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Rachel Ryan (MITA)
November 14, 2012

Leading Executives from Across the Country Urge Senate to Repeal the Device Tax

New Tax Threatens Domestic Jobs and Medical Innovation

Washington, D.C. – A broad coalition of medical technology companies, physician groups, venture capital firms and leading associations today submitted a letter to Senate leadership urging policymakers to repeal the onerous medical device tax that threatens U.S. jobs, medical innovation and patient care. The Medical Imaging & Technology Alliance (MITA), the Advanced Medical Technology Association (AdvaMed) and the Medical Device Manufacturers Association (MDMA) were among the 805 signatories that represent hundreds of thousands of medical technology jobs.  Beginning January 1, 2013, the health care law will impose over $30 billion in new excise taxes on medical technology companies. 

In coordination with the coalition letter, tomorrow more than 50 executives from across the United States representing the two million that work for and support the medical technology industry will meet with members of Congress to encourage them to protect research, development, investment and innovation by repealing the excise tax.

“Without action from Congress, implementation of the medical device tax will cost our economy thousands of high paying jobs,” said Gail Rodriguez, Executive Director of MITA. “These job losses will directly impact patient access to the most advanced, life-saving medical technologies available.”

Employing more than 400,000 workers nationwide, the medical device industry generates approximately $25 billion in payroll, pays out salaries that are 40 percent higher than the national average ($58,000 vs. $42,000) and invests nearly $10 billion in research and development (R&D) annually.

“This damaging tax will force job cuts and investments in tomorrow’s treatments and cures,” said Stephen J. Ubl, President and CEO of AdvaMed. “Continued medical innovation is key to driving public health gains by reducing costs associated with chronic diseases like diabetes and obesity and catalyzing economic growth through healthier more productive people and by creating high quality manufacturing jobs. Simply put healthier lives mean healthy economies.”

“We are already seeing the negative impact this onerous policy is having on jobs and innovation, and America’s med tech innovators can’t afford to find out what implementation of the device tax would bring,” said Mark Leahey, President and CEO of MDMA.  “At a time when elected officials are looking for more manufacturing jobs based in innovative industries, repealing this tax is a win-win for patients and workers.”

The letter notes that the medical device industry is fueled by innovative companies, many of which are small businesses.  In fact, 80 percent of them have less than 50 employees and 98 percent have less than 500 employees.  The impact of the device tax is expected to be especially hard on smaller companies whose innovations are not immediately profitable.


The Medical Imaging & Technology Alliance (MITA), a division of NEMA, is the collective voice of medical imaging equipment, radiation therapy and radiopharmaceutical manufacturers, innovators and product developers. It represents companies whose sales comprise more than 90 percent of the global market for medical imaging technology. For more information, visit

AdvaMed member companies produce the medical devices, diagnostic products and health information systems that are transforming health care through earlier disease detection, less invasive procedures and more effective treatments. AdvaMed members range from the largest to the smallest medical technology innovators and companies.

The Medical Device Manufacturers Association (MDMA) is the voice for entrepreneurial and innovative medical device companies.  MDMA’s mission is to promote public health and improve patient care through education and the advocacy of research-driven medical device technologies.