Trump signs permanent repeal of medical device tax opposed by Welch Allyn

Sunday, December 29, 2019


WASHINGTON – President Donald Trump has signed a bill that permanently repeals a tax on medical device manufacturers, including Welch Allyn of Skaneateles, that Congress passed in 2013 to help pay for Obamacare.

The repeal of the 2.3% excise tax on medical devices was among a series of tax breaks tucked inside a $1.4 trillion package of spending bills for fiscal 2020.

Congress approved the spending bills last week and Trump signed the legislation into law Friday night aboard Air Force One while traveling to Florida for the holidays.

When the medical device tax became effective in January 2013 it was expected to raise almost $30 billion over 10 years to help pay for the Affordable Care Act, former President Barack Obama’s landmark healthcare law.

But after the medical device industry spent more than $110 million lobbying against the tax, Congress passed separate measures that suspended the tax for 2016 and 2017, and again for 2018 and 2019.

The new legislation permanently repeals the tax without replacing the lost revenue for the Affordable Care Act.

Chicago-based Hillrom, which owns Welch Allyn, said the tax repeal is welcome news for the company, which employs about 1,000 people in Skaneateles Falls.

“The permanent repeal of the medical device tax represents a huge win for patients, caregivers and continued medical innovation,” Howard Karesh, vice president of communications for Hillrom, said in a statement.

View All News »