Bipartisan legislation introduced by U.S. Rep. Erik Paulsen (R-MN) at the start of the 115th Congress would eliminate the Affordable Care Act’s (ACA) medical device tax in an effort to spur innovation.
The Protect Medical Innovation Act would permanently repeal the 2.3 percent excise tax on the sale of medical devices that was imposed under the ACA.
Legislation implementing a two-year suspension of the medical device tax was previously approved by Congress and signed into law.
“One of the best ways to protect American manufacturing, spur innovation and make sure the latest and best medical technology is affordable for patients is to repeal this burdensome tax,” Paulsen, a member of the House Ways and Means Committee, said.
“We are already seeing new American jobs and increased investment in research and development as a result of the temporary suspension of this tax. With over 200 cosponsors at the start of this new session, and with overwhelming bipartisan support in the past, permanent repeal should be a top priority for Congress,” he added.
JC Scott, senior executive vice president of government affairs at Advanced Medical Technology Association, said early introduction of the bill in the 115th Congress sends a strong signal that the issue is a high priority for incoming lawmakers.
“The current suspension of the tax has allowed medical technology companies to reinvest funds into new R&D, restart delayed projects, build infrastructure and support new hiring,” Scott said. “The sooner this onerous tax is gone for good, the sooner these benefits can be made permanent. That’s crucial for patients and for continued medical innovation.”