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AdvaMed, MITA & MDMA Applaud Bipartisan Senate Effort to Repeal the Device Tax
Washington, D.C. – The Advanced Medical Technology Association (AdvaMed), the Medical Imaging & Technology Alliance (MITA), and the Medical Device Manufacturers Association (MDMA) today applauded the Senate re-introduction of bipartisan legislation to repeal the increasingly damaging medical device excise tax. The legislation, S. 149 “The Medical Device Access and Innovation Protection Act,” was sponsored by Senators Orrin Hatch (R-UT) and Amy Klobuchar (D-MN) and was introduced with a bipartisan group of original cosponsors – Al Franken (D-MN), Pat Toomey (R-PA), Joe Donnelly (D-IN), Richard Burr (R-NC), Rob Portman (R-OH), Bob Casey (D-PA), Dan Coats (R-IN), and Jeanne Shaheen (D-NH).
“This tax is an anchor on American economic growth. Our industry has long been an engine of growth, driving medical innovation and producing well-paying manufacturing and advanced science and technical jobs. That’s why there is broad bipartisan support to repeal this tax and we urge Congress to act quickly,” said Stephen J. Ubl, President and CEO of AdvaMed. “Today’s news that U.S. leadership in medical research is eroding underscores the need to address this tax quickly before further harm is done.”
“We’re encouraged to see continued bipartisan momentum behind repeal of the harmful device tax,” said Gail Rodriguez, executive director of MITA. “MITA appreciates Senators Hatch and Klobuchar’s leadership in introducing this bill in the Senate. Our industry’s jobs and the U.S. economy cannot wait any longer.”
“Senators Hatch and Klobuchar are passionate leaders of the bipartisan efforts to repeal the medical device tax, and MDMA thanks them and all their colleagues who recognize just how destructive this policy is for innovation,” said Mark Leahey, President and CEO of MDMA. “The United States needs more good paying, high-tech manufacturing jobs, and patients throughout the world are looking to this dynamic industry to alleviate suffering. Repealing the medical device tax would help med tech innovators solve both of these pressing challenges.”
The bill introduced today comes on the heels of last week’s introduction of H.R. 160 “The Protect Medical Innovation Act,” sponsored by Reps. Erik Paulsen (R-MN) and Ron Kind (D-WI), which now has 261 cosponsors.
The United States is the global leader in health care innovation and is a net exporter of medical devices, but the medical device tax threatens to undermine this position. The device tax remains a drag on medical innovation and has resulted in the loss or deferral of more than 33,000 industry jobs.
The medical technology industry is an important engine for economic growth in the United States, employing more than 400,000 workers nationwide, generating approximately $25 billion in payroll, paying out salaries that are 40 percent more than the national average ($58,000 vs. $42,000) and investing nearly $10 billion in research and development annually. The industry is fueled by innovative companies, the majority of which are small businesses, with 80 percent of companies having fewer than 50 employees.