U.S. Rep. Darin LaHood (R-IL) recently helped introduce a bipartisan bill to repeal the excise tax on medical devices before it is slated to be reinstated in 2020.
Rep. LaHood said the tax would limit the innovation that leads to health care breakthroughs.
“Innovation in the medical device field has reduced the overall cost of health care over time and the medical device tax threatens to stifle ongoing and future breakthrough research advancements in the medical field that can save lives,” Rep. LaHood said on April 12.
LaHood joined a bipartisan group of lawmakers to introduce the Protect Medical Innovation Act of 2019, H.R. 2207, which was sponsored by U.S. Rep. Ron Kind (D-WI) and gained the support of 226 original cosponsors on April 10. The bill would amend the 2.3 percent excise tax on the sale of medical technologies that was enacted under the Affordable Care Act. The tax applies to revenues and not profits, LaHood’s office explained.
The House passed legislation to repeal the medical device tax in 2018, but the measure was not approved by the Senate.
“Medical devices have revolutionized health care and we believe fostering an environment that supports innovation in medical research and technology will lead to better care and lower costs for consumers around this country,” LaHood said.
Steve Ferguson, chairman of Cook Group Inc., praised Rep. LaHood for understanding the urgency for Congress to pass legislation to repeal the medical device tax. “We look forward to working with lawmakers so that we can continue to provide patients with the latest technology, support our communities like Canton, and invest in our business as healthcare evolves,” said Ferguson, whose company provides medical devices and other services.
“It’s time for the medical device tax to go,” LaHood said, adding in a written statement that if Congress fails to act this year, the punitive tax on innovators would kill jobs and prevent patients from receiving the healthcare solutions they need.