Medical Device Tax

Tuesday, December 11, 2018

Source: AdvaMed

The medical device excise tax is a 2.3% excise tax on the sale of certain medical technology that was enacted as part of the Affordable Care Act. In January, Congress suspended the device tax until December 31, 2019 as part of legislation to continue funding government operations. This suspension is an important first step, but absent permanent repeal, the significance of this action for the industry is diminished.

On July 24, the House voted to permanently repeal the medical device excise tax with the passage of  H.R. 184, the Protect Medical Innovation Act of 2017. 283 Members of Congress, including 57 Democrats, sent a strong signal of support for repeal.

Securing this significant House vote was very important. The large margin reemphasizes the level of support this issue has in Congress and distinguishes the need for repeal as an issue separate from other taxes included as part of the Affordable Care Act. Most importantly, this successful vote has well positioned this issue for further consideration in the Senate later this year.  

Permanently repealing the device tax will provide medical technology innovators with the long-term certainty necessary to support future job growth and sustainable, cutting-edge R&D that will ultimately lead to the next generation of breakthroughs in patient care and treatment. With any other policy outcome, effective planning for a sustainable future becomes much more difficult.

We are grateful for the strong, bipartisan show of support for repeal from the House, and want to ensure that the members of Congress who supported repeal understand how appreciative we are. We asked these House members to take action to support our industry here in the United States, and they have done so.

We encourage you to send the following letter to your representative - if they voted in favor of the bill - to express our appreciation for their support of repeal of the device tax, for the medical technology industry, and for the patients and providers we serve. Our grassroots platform will be able to tell you if your local Member voted for the bill.

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