U.S. Rep. Fred Upton (R-MI) commended the U.S. Senate approval last week of a fiscal year 2020 spending package that includes the permanent repeal of the medical device tax.
“This is a huge bipartisan win for patients, jobs and medical innovation in southwest Michigan and across the country,” Rep. Upton said on Dec. 19.
The FY 2020 spending bill was signed into law by the president on Dec. 20.
The 2.3 percent tax on the gross sales of medical devices became law as part of the Affordable Care Act, also known as Obamacare, and was set to take effect in January 2020, according to Rep. Upton’s office.
The congressman noted that repeal of the tax is welcome news, particularly for local employers in his home state, including Stryker Corp., a Fortune 500 medical technologies firm based in Kalamazoo, Mich., that produces products such as implants used in joint replacement and trauma surgeries and surgical equipment.
“Because of this repeal, Stryker could save nearly $100 million over the course of a year, allowing them to invest more into jobs, their employees and research that will result in huge benefits for patients,” Rep. Upton said.
Kevin Lobo, chairman and CEO of Stryker, added that the repeal will enable the company to also invest more in “innovation that will support our mission of working together with our customers to make health care better.”