Press Releases

Job Losses Will Return with Medical Device Tax

WASHINGTON, D.C. – As Congress prepares to address end-of-year spending decisions and other initiatives that are set to expire if not acted upon, the Advanced Medical Technology Association (AdvaMed) today released survey results showing that reinstatement of the medical device excise tax would bring job losses as well as declines in investment in research and development.

“We’ve seen it before. We’ll see it again,” said Scott Whitaker, President and CEO of AdvaMed. “A $20 billion tax increase on the industry will have serious consequences on employment and investment. The last time this tax was in effect, we saw nearly 29,000 jobs lost, and we could face even greater losses if Congress does not stop this tax from returning.”

A recent survey of medical device companies conducted by AdvaMed showed that 67.4 percent are concerned that reinstatement of the medical device tax will lead to layoffs in their companies. In addition, 83.2 percent believed the return of the tax would require their companies to cut back on R&D. AdvaMed represents more than 400 medical technology companies in communities large and small throughout the U.S.

While the medical device tax has been suspended since 2016, it is slated to come back into effect January 1 unless Congress takes action.

The U.S. medical technology industry saw its ranks fall significantly while the medical device tax was in effect, according to the U.S. Department of Commerce. From 2012 to 2015, the number of U.S. medtech jobs declined from 401,472 to 372,638 – a loss of 28,834 jobs or a 7.2 percent decrease for the time period.

Annual Change in Total Medtech Employment: 2010-2015


Total Medtech Jobs

Y-o-Y Change

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Medtech Job Losses  from 2012 to 2015           -28,834                                 7.2%                             

U.S. Dept. of Commerce 

“American patients and the American economy cannot afford for us to return to the days when this tax had such a devastating impact on our industry,” Whitaker said. “Strong, bipartisan majorities in both the House and Senate want this tax to go away. It’s time for action.”