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Medical Device Industry Stakeholders Seek Permanent Repeal of Medical Device Tax

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The Medical Device Manufacturers Association (MDMA), the Advanced Medical Technology Association (AdvaMed), the Medical Imaging & Technology Alliance and numerous representatives from throughout the medical device industry are asking the U.S. Congress to permanently repeal the 2.3% excise tax on the sale of nearly every medical device in the country, first proposed in 2009. 

In effect from 2013 through 2015, the tax impacted investments in research, development and job creation. The current suspension of the tax will expire on December 31, 2019.

In a letter to Congress, industry stakeholders note that companies are putting long-term investments on hold to prepare for a possible reinstatement and call out overwhelming bipartisan support for a full repeal of the medical device tax by Congress.

Among the entities signing the letter are orthopedic companies of all sizes, including Alphatec, Arthrex, Arthrosurface, Empirical Spine, Globus, Medtronic, NuVasive, Orchid Orthopedic, OrthAlign, Orthofix, OsteoMed, Stryker, The Orthopaedic Implant Company, Tyber Medical and Zimmer Biomet and others.

“This diverse community of voices urging Congress to fully and permanently repeal the medical device tax is yet another example of the growing coalition working together to ensure this tax on innovation never returns,” said Jeff McCaulley, CEO of Avalign Technologies and Chairman of MDMA.  “Having fought against the medical device tax when it was first proposed in 2009, MDMA remains committed to working with Members of Congress and all stakeholders to make sure that this disastrous policy never diverts precious resources away from the cures and therapies of tomorrow.”

“Congress needs to act now to stop a $20 billion tax on the medical technology industry from coming back at the end of the year," said Kevin Lobo, Chairman and CEO of Stryker and Chairman of AdvaMed. "This tax hurts innovation and the development of future treatments and cures. American patients and health care providers are counting on our industry to help improve and save lives and this tax is an obstacle to that mission."

Source: Medical Device Manufacturers Association