Good news came out of the House today for the medical device industry. Representative Erik Paulsen (MN), member of the House Ways and Means Committee, issued the following statement after his legislation to repeal the 2.3% excise tax on US-made medical devices gained its 218th cosponsor, giving the bill enough support to pass the U.S. House.
“The message from the House is clear: it’s time to repeal the medical device tax,” said Rep. Paulsen. “Not only is repeal important to the 400,000 Americans whose jobs this vital industry supports, but for the countless patients and consumers who benefit from the life-saving and life-improving technologies developed by our nation’s medical device innovators. Last year, the House overwhelmingly passed legislation repealing the tax, and I’m confident we’ll do so again. Now it’s time for the US Senate to follow the House’s lead, vote to repeal this onerous tax, and ensure the continued leadership of American medical device manufacturing.”
In response to the announcement, Stephen J. Ubl, president and CEO of AdvaMed, issued a statement to mark the achievement of a majority of Members of the U.S. House of Representatives signing on as co-sponsors of HR 523, the Protect Medical Innovation Act of 2013:
“Today’s news that HR 523 has garnered the support from a majority of the House of Representatives underscores the growing bipartisan support to repeal the medical device tax. It’s a testament to the leadership of Reps. Erik Paulsen (R-MN), Ron Kind (D-WI) and many others who have worked tirelessly to ensure this important jobs issue remains front and center.”
Ubl noted that legislative measures to repeal the device tax passed the House last summer and overwhelmingly passed the Senate just weeks ago. “Now this bill has more than enough support to pass in the House yet again. The damaging effects of the tax are real and are hitting companies who have announced layoffs, reductions in R&D or delays in capital improvements. We urge Congress to move swiftly to repeal the tax.
Reps. Paulsen and Ron Kind reintroduced the House repeal bill in February.