White House Says No to Device Tax Repeal as Part of Current Budget Talks

Some lawmakers have been trying to work medical device tax repeal in as part of a stop-gap bill to continue funding the government past Sept 30.

Sen. Orrin Hatch (R-Utah), a backer of the tax repeal, told reporters the repeal wouldn’t be likely to appear as part of the continuing resolution (CR), which extends government funding to avoid a shutdown. But it could become part of legislation raising the federal debt ceiling, he said. Sen. John McCain (R-Ariz.) had planned to seek repeal of the 2.3 percent tax through an amendment to the continuing resolution that would avert a government shutdown the week of Sept. 30. But Senate Majority Leader Harry Reid (D-Nev.) made clear he would not accept amendments for consideration on the floor, lawmakers said.

Another potential scenario laid out by congressional aides was for the House to add the medical device tax repeal to its version of the continuing resolution—rather than accept the Senate version as is—then send the amended bill back to the Senate for an additional vote.

The House easily repealed the device tax back in 2012 but that bill died when the new Congress took over. Rep. Erik Paulsen, (R-Minn.), re-introduced a repeal bill this year but it has been stuck in the House Ways and Means Committee. The bill has more than 260 co-sponsors and plenty of support.

The Senate overwhelmingly approved repeal earlier this year in a symbolic, but non-binding (70-29) vote on the 2014 budget. Senate support from Democrats continues to grow. Earlier this week, N.C. Sen. Kay Hagan signed off as the 36th co-sponsor of proposed Senate legislation to repeal the bill.

Despite growing support, Reid says attaching the tax to current negotiations is a no-go.

Senator Reid thinks the idea of attaching the medical device tax repeal to the continuing resolution or the debt ceiling is “stupid,” according to a statement from a Reid spokesperson. “Senator Reid supports the medical device tax, and his position is clear from his record: He voted for the medical device tax in the Affordable Care Act and against repealing it during the budget debate earlier this year. His position has not changed, and the Senate will reject any CR that includes a repeal of the medical device tax. If the House wants to avoid a Republican government shutdown, they should pass a clean CR. Period.” the spokesperson said.

However, Reid went on to hint at possible future cooperation.

“If they want to look at the device tax, let’s do it in the context of a separate piece of legislation,” he said.

The White House would not agree to repealing a medical device tax as part of a stop-gap bill, Obama administration press secretary Jay Carney told reporters during a briefing on Thursday, Sept. 26.

During this week’s AdvaMed 2013 meeting in Washington, D.C., AdvaMed President and CEO Steve Ubl said the association would “look at every opportunity to repeal the tax,” including legislation dealing with the debt ceiling, the continuing resolution and overall tax reporm.

Realistically, Ubl added: “We need a legislative vehicle that will make its way to the president’s desk.”

He said the association had “stepped up the intensity of our full-court press” to lobby Congress and the White House.