Time To Fully Repeal The Medical Device Tax
By Scott Whitaker, President and CEO, AdvaMed
America’s medical device and diagnostics industry helps deliver life-changing medical advancements to patients in need. These innovations allow people to live longer and healthier lives, yield savings across the health care system by replacing more invasive procedures and reducing hospital stays, and help create good-paying American jobs.
As president and CEO of AdvaMed, I know that to continue to advance the benefits of medical technology, we must have the right public policies to support investment, innovation and patient access. This includes permanent repeal of the U.S. medical device tax. Instituted in 2013, the 2.3 percent medical device tax has had a significant, adverse impact on medical technology investment, research and development. Fortunately, Congress has taken a great first step toward repeal of this onerous tax by implementing a two-year suspension late last year.
I applaud lawmakers from both sides of the isle who came together in a bipartisan effort to secure device tax relief in 2015. With the current suspension, our medical technology companies are investing recaptured revenue into important efforts such as increasing R&D and launching new products to advance patient care. Going forward, securing permanent repeal will be critical to strengthening these efforts, creating the kind of certainty that drives long-term planning and investment, and preserving America’s global leadership in medical technology.
To learn more about the importance of device tax repeal to economies in states across the country — including New York and Ohio — I invite you to read two recent articles I co-authored on the subject, here and here. I hope you enjoy them, and I welcome your feedback. For more information about the device tax and the importance of full repeal, please click here. Thank you for your support!