Congressmen Introduce Legislation to Permanently Repeal the Medical Device Tax

And the fight continues.

U.S. Reps. Erik Paulsen (R-Minn.) and Ron Kind (D-Wis.) introduced legislation this week to permanently repeal the medical device tax. The Protect Medical Innovation Act repeals the 2.3 percent excise tax included in President Obama’s health care law that applies to the sale of medical device products. 
 
Similar legislation was introduced by Paulsen in previous sessions of Congress. In the 114th Congress, a two-year suspension of the medical device tax passed in both the U.S. House of Representatives and U.S. Senate with bipartisan support and was signed by Obama. The Protect Medical Innovation Act was introduced with broad bipartisan support and 221 cosponsors.
 
“One of the best ways to protect American manufacturing, spur innovation, and make sure the latest and best medical technology is affordable for patients is to repeal this burdensome tax,” Paulsen said. “We are already seeing new American jobs and increased investment in research and development as a result of the temporary suspension of this tax. With over 200 cosponsors at the start of this new session, and with overwhelming bipartisan support in the past, permanent repeal should be a top priority for Congress.”
 
Advocacy groups and stakeholders praised the reintroduction of the Protect Medical Innovation Act.
 
“The early introduction of device tax repeal legislation sends a strong signal that this issue is a high priority for the incoming Congress. A bipartisan majority in the House recognizes that this anti-job, anti-innovation and anti-patient tax needs to be permanently repealed now,” J.C. Scott, senior executive vice president for Government Affairs at the Advanced Medical Technology Association, said in prepared remarks. “The current suspension of the tax has allowed medical technology companies to reinvest funds into new R&D, restart delayed projects, build infrastructure and support new hiring. The sooner this onerous tax is gone for good, the sooner these benefits can be made permanent. That’s crucial for patients and for continued medical innovation.”
 
“In order for medical technology innovators to develop the new cures and therapies of tomorrow, we need smart policies in place today,” said Paul LaViolette, executive chairman of CardioFocus and chairman of the Medical Device Manufacturers Association. “Permanently repealing the medical device tax is a major boost to accomplish our mission, and Congressman Paulsen has been a tremendous leader in making sure innovation thrives in the 21st century.”
 
“We appreciate the leadership of Congressmen Paulsen and Kind on this bipartisan issue and for their longtime support in championing job creation, economic growth, and patient care through investment in the medical technology industry,” said Joe Robinson, chairman of MITA board of directors and senior vice president of health systems solutions at Philips Healthcare. “Full repeal of the medical device tax will create jobs and is the only way to remove a significant barrier in investing in innovation, and research and development, thereby allowing the next generation of life-saving, breakthrough technologies to become a reality.” 
 
Paulsen serves on the U.S. House Ways and Means Committee, the bicameral Joint Economic Committee, and is co-chair of the Congressional Medical Technology Caucus.