Now that the medical device tax has been implemented and device makers have already made their first payment to the IRS, the focus has turned to getting this thorn in their side repealed. They have gained some support in that effort, and AdvaMed says that legislation introduced in the US House of Representatives shows the growing bipartisan support for repealing the medical device tax.
“The momentum from the last Congress is carrying over with a broader array of champions working to defeat this terrible tax,” says AdvaMed president and CEO Stephen J. Ubl. “On both sides of the aisle, members of Congress know the device tax hurts our economy, kills jobs, and slows the march of medical progress needed to fight disease and reduce long-term health costs. The medical technology industry is united in its commitment to repeal this tax and appreciates the leadership shown in Congress to continue the effort.”
Reps. Erik Paulsen (R-MN) and Ron Kind (D-WI) reintroduced the House repeal bill with more than 175 co-sponsors, including 20 Democrats. Ubl praised Paulsen and Kind for working together on the repeal effort. “Patients, the healthcare system, and the American economy are winners when legislators work together like this. America’s medical technology industry looks forward to assisting in this important repeal effort,” Ubl says.
According to AdvaMed, the tax has already led to layoffs, reductions in planned facility expansions, and other cost-cutting measures, which the association blames for stunting economic growth, impeding innovation, and affecting patient care. Studies show the tax threatens up to 43,000 jobs nationwide.
The medical technology industry helps employ more than 2 million people in the U.S., and salaries in this sector are 40 percent higher than the national average.