Paulsen’s work to end medical device excise tax backed by home state manufacturers

Small and mid-sized medical device manufacturers from around Minnesota last week told U.S. Rep. Erik Paulsen (R-MN) they support his ongoing efforts to repeal the medical device excise tax because it impedes private-sector innovation of life-saving equipment.

“The permanent repeal of the medical device tax, which Congressman Paulsen continues to champion, would provide financial certainty as we plan long-term investments to improve patient outcomes,” said Scott R. Ward, president and CEO of St. Paul-based Cardiovascular Systems, Inc. (CSI), during a Feb. 22 tour the company hosted that representatives of several Minnesota medical device manufacturers attended along with Paulsen.

“Protecting Minnesota jobs is a top priority of mine and getting rid of the medical device tax is critical to our state’s med-tech industry,” said Rep. Paulsen during the event.

The congressman, who is chairman of the U.S. Joint Economic Committee and co-chairs the Congressional Medical Technology Caucus, has consistently worked in Congress to revoke the medical device tax and enable unfettered advancement by medical device makers that aim to offer better access for patients to novel equipment, according to his office.

Rep. Paulsen first secured a two-year moratorium on the medical device tax — imposed in 2013 as part of the Affordable Care Act — as a provision of the Consolidated Appropriations Act of 2016 signed into law on Dec. 18, 2015. Enactment on Jan. 22 of the continuing appropriations bill, H.R. 195, extended the moratorium through 2019.

The congressman then sought to permanently end the tax when he introduced the Protect Medical Innovation Act of 2017, H.R. 184, on Jan. 3, 2017. The bill, which would repeal the 2.3 percent excise tax on the sale of a medical device by the manufacturer, producer or importer, has gained 263 cosponsors and awaits consideration by the House Ways and Means Committee.

U.S. Sen. Orrin Hatch (R-UT) introduced a related bill, the Medical Device Access and Innovation Protection Act, S. 108, on Jan. 12, 2017 that also would permanently repeal the medical device tax. S. 108 has 17 cosponsors, including U.S. Sens. Todd Young (R-IN) and Thom Tillis (R-NC). S. 108 awaits consideration by the Senate Finance Committee.

“By suspending this tax, we’re encouraging more medical innovation, growing local companies and jobs, and increasing accessibility to life-saving devices,” Paulsen said last week. “I will continue to lead the way for a permanent repeal but am glad these innovators are getting two more years of relief.”

“We are committed to developing and commercializing innovative solutions for treating vascular and coronary disease,” added Ward about the devices CSI develops. The firm employs roughly 670 people and has been able to retain 30 to 40 Minnesotans’ jobs due to the two-year repeal, according to Paulsen’s office, which added that if a full tax repeal continues, then CSI expects to add jobs and turn a profit.