New Opportunities Exist to Quickly Repeal Medical Device Tax
On January 1, 2018, the medical device tax, a 2.3% excise tax on medical devices that was included in the Affordable Care Act but suspended for 2016 and 2017, went back into effect after a brief suspension. This not only makes the medical device industry the only one facing a tax increase in 2018, but it unfairly penalizes innovation and ultimately harms patients who are waiting for new, breakthrough devices to come to market.
The good news is there is growing support in Congress to act quickly to reverse this action. Earlier this week, Senator Ed Markey (D- MA) and Sen. Elizabeth Warren (D – MA) filed legislation, the “No Taxation on Device Innovation Act.” MassBio strongly supports this bill and urges its quick passage.
Additionally, the medical device industry from across the country is advocating for Congress to include a repeal of this tax in the bill they must pass before January 19 to keep the federal government funded. AdvaMed, the national trade association of medical technology companies, is urging those who oppose the tax to contact their members of Congress and ask that they support repeal of the device tax in the funding bill. We encourage you to send a letter – each one makes a difference.
The medical device industry is a critical part of the Massachusetts economy with 480 companies headquartered here with more than 26,000 jobs accounting for nearly $2 billion in payroll. Their innovation is powering the future of patient care with things like combination products and companion diagnostics that allow for precision medicine. We strongly encourage Congress to act quickly to repeal this harmful tax on innovation.