MedTech Association Supports the Repeal of Medical Device Tax
Tuesday, January 27, 2015
MedTech Association joined nearly 1,000 medical technology companies, research advocates, physician groups and others in signing a letter to Congressional leadership last week reiterating their support to repeal the medical device excise tax. Manufacturers of medical technology are required to pay a 2.3 percent excise tax on products ranging from surgical tools to insulin pumps and x-ray machines.
The letter comes as both the U.S. House of Representatives and the U.S. Senate have introduced bipartisan legislation to repeal the onerous tax. The House legislation, H.R. 160, “The Protect Medical Innovation Act,” was sponsored by Representatives Erik Paulsen (R-MN) and Ron Kind (D-WI), and was introduced with 254 original cosponsors on January 7, 2015. A bipartisan group of ten Senators, led by Senate Finance Committee Chairman Orrin Hatch (R-UT), introduced “The Medical Device Access and Innovation Protection Act,” S. 149.
“On behalf of nearly 350 medical technology companies across New York State, MedTech urges Congress to repeal the medical device tax in the 114th Congress. The medical device industry plays a vital role in the New York economy, especially Upstate New York where it employees 8,400 residents. Without repeal of the device tax, the State’s industry position is in real danger, as well as the Upstate NY economy. This is especially true in the Central New York and Capital regions where the bioscience and medical technology industry is highly concentrated and any impacts are particularly felt,” said Jessica Crawford, President of MedTech Association.
The tax, which took effect in January, 2013 as part of the Patient Protection and Affordable Care Act, is hurting medical research, innovation, job creation, and the overall delivery of quality patient care. The medical technology industry is an important engine for economic growth in the United States, employing more than 400,000 workers nationwide, generating approximately $25 billion in payroll, paying out salaries that are 40 percent more than the national average ($58,000 vs. $42,000), and investing nearly $10 billion in research and development annually. The industry is fueled by innovative companies, the majority of which are small businesses, with 80 percent of companies having fewer than 50 employees.
MedTech id joined in their opposition to the tax by the Advanced Medical Technology Association (AdvaMed), the Medical Device Manufacturers Association (MDMA) and the Medical Imaging Technology Association (MITA).