Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 326 WINNINGDEVICE TAX RELIEF A D V O C A C Y I N A C T I O N POLICY AdvaMed’s opposition to the tax and education of policymakers about its harmful nature began before the tax was even enacted as one of many revenue offsets for the 2010 Affordable Care Act (ACA). The Association opposed the tax as part of the ACA, and has subsequently pur- sued every possible legislative opportunity for repeal, whether as part of corporate tax reform, stand-alone legislation, or part of another legislative vehicle. CONGRESS AdvaMed’s Government Affairs department led the way in building strong bipartisan support for repeal, holding hundreds of meetings with members of Congress and their staffs to educate them about the adverse effects of the tax on businesses and innovation. The Association organized dozens of Capitol Hill “fly-ins,” where member company execs met with congressional representatives and/ or testified at hearings to drive home our message. AdvaMed also led a coalition of over 900 companies, associations, and patient, provider and research organizations, that worked together for repeal. In the House, bipartisan repeal legislation sponsored by Rep. Erik Paulsen first passed in 2012 with 270 votes, including 37 Democrats. By the end of 2015, the House had passed device tax repeal five times, including a vote during the year that included 46 Democrats. In the Senate, a 2013 vote to include repeal in a non-binding budget resolution passed by an overwhelming majority of 79-20. By 2015, incoming Senate Majority Leader Mitch McConnell signaled repeal as a key priority for the year, and cosponsors of Senator Orrin Hatch’s bipartisan repeal bill reached 39. AdvaMed’s champions on the Hill also kept the need for repeal front-and-center during key fiscal inflection points and as part of the debate on fundamental tax reform, ultimately leading to device tax suspension at the end of 2015. Senator Al Franken and his staff discuss the need for device tax repeal with Hallie Brinkerhuff, Zimmer’s director of advanced technology (at left) during an AdvaMed Capitol Hill fly-in. Senator Patrick Toomey of Pennsylvania, chairman of the Senate Finance Com- mittee’s Subcommittee on Health Care (at left), greets Bruce Heugel, senior vice president and CFO of B. Braun Medical, who testified before the subcommittee on the harmful nature of the device tax. H.R. 2029 “Consolidated Appropriations Act” Signed December 18, 2015 Be it enacted by the Senate and House of Representatives of the Unites States of America in Congress assembled… *Sec. 174, page 830-831: DEVICE TAX MORATORIUM Ø The tax…shall not apply to sales during the period beginning on Jan. 1, 2016, and ending on Dec. 31, 2017. Ø The amendment made by this section shall apply to sales after Dec. 31, 2015. In late 2015, Congress passed and the president signed a two-year suspension of the medical device tax as part of year-end tax extenders legislation, marking a major milestone in AdvaMed’s six-year campaign to repeal this onerous tax. Suspension will save the industry nearly $2 billion annually, freeing up funds for more next-generation treatments and cures. Securing full repeal remains a top priority. Nevertheless, suspen­ sion represents a major first step, as well as broad bipartisan recognition of the negative effects the tax has had on R&D, American competitiveness and innovation. AdvaMed’s repeal strategy has relied on an integrated advocacy approach from the very beginning: A D V A M E D 2 0 1 5 A N N U A L R E P O R T