A coalition of medical device manufacturers is supporting lawmakers' attempts to repeal the new 2.3% medical device excise tax.
Two U.S. senators and two representatives have introduced bills to repeal the tax, and the measures have bipartisan support, according to the Medical Imaging and Technology Alliance (MITA).
On February 7, Sens. Orrin Hatch (R-UT) and Amy Klobuchar (D-MN) introduced the Medical Device Access and Innovation Protection Act; on February 6, Reps. Erik Paulsen (R-MN) and Ron Kind (D-WI) introduced HR 523, the Protect Medical Innovation Act.
The Senate bill includes bipartisan co-sponsorship for the first time from Sens. Hatch, Klobuchar, Richard Burr (R-NC), Patrick Toomey (R-PA), Robert Casey Jr. (D-PA), John Cornyn (R-TX), Al Franken (D-MN), Dan Coats (R-IN), and Joe Donnelly (D-IN), indicating growing support among senators for device tax repeal, according to the MITA. In the House, a bipartisan group of 175 are co-sponsors of the repeal bill.
The tax requires device manufacturers to pay an estimated average of $194 million per month (with a payment of approximately $97 million due semimonthly). According to the MITA, the tax threatens a medical device industry that helps employ 2 million people, generates approximately $25 billion in payroll, pays out salaries that are 40% higher than the national average ($58,000 versus $42,000), and invests nearly $10 billion in R&D annually.
