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Bipartisan legislation to repeal medical device tax introduced in Congress
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Congressman Erik Paulsen (R-Minn.) has introduced H.R. 160, a bill that would repeal the 2.3% medical device excise tax. The legislation is a bipartisan effort co-sponsored by Congressman Ron Kind (D-Wis.).
“The medical device tax continues to stifle innovation, cost American jobs, and drive up health care costs despite bipartisan opposition in both houses of Congress,” Paulsen stated in a news release. “With over 250 co-sponsors day one of the new session, it is clear repealing this tax should be one of the priorities for the new Congress. The American people are looking for their elected officials in Washington to find common ground and repealing the medical device tax is a great place to start.”
H.R. 160, also known as “The Protect Medical Innovation Act,” is Paulsen’s third attempt to repeal the medical device tax included under the Affordable Care Act. The first two attempts passed the House of Representatives, but were never brought up for a vote in the Senate.
“Repealing the medical device tax is critical for the United States to maintain its global leadership in this high-tech manufacturing sector and to allocate resources toward the development of new cutting-edge technologies. This tax on innovation stymies the search for cures and treatments and stalls job creation,” Stephen J. Ubl, president and CEO of AdvaMed, stated in an AdvaMed press release. “We appreciate the ongoing support from both sides of the aisle and the leadership of Reps. Paulsen and Kind on this important issue.”
Perspective
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B. Sonny Bal, MD, JD, MBA
As an orthopedic surgeon, product developer and executive officer of a small biomaterial company, I am firmly against the 2.3% tax on medical device sales (not profits) that was imposed under the Affordable Care Act, and welcome its repeal. Innovative medical devices have helped countless patients improve their lives and optimize their productivity and contribution to society. The remarkable improvement in cancer survival rates, and the dramatic pain relief and functional recovery from hip and knee replacements are just two examples.
The medical device sales tax selectively affects small health care companies that may have limited revenues, but no profits as yet. Punitive tax laws stifle innovation and discourage job creation in research and development, manufacturing, sales and other crucial components of start-up businesses. As an orthopedic surgeon, attorney and officer of a publicly traded health care company, I do not believe the medical device industry should be selectively targeted to bear an unfair burden of paying for health reform.
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