Industry groups commit to war against medical device tax as 1st due date arrives coverage of the medical device tax

Medical device lobbying groups are remobilizing efforts to repeal a 2.3% sales tax as the industry scrambles to meet the 1st payment deadline this month.

A trio of industry advocates banded together to urge Congress to take action on the tax, which they estimate will cost medical device makers about $194 million per month.

The 1st payments are due today and should represent 2.3% of applicable sales from January 1 to January 15, according to IRS regulations released last month. The federal tax agency agreed to waive late fees for companies who miss early due dates.

"Instead of investing in new medical technologies or creating new jobs, innovators across the U.S. wrote a check to the IRS this month," Medical Device Manufacturers Assn. president Mark Leahey said in prepared remarks.

"Every dollar spent on this tax is a dollar taken away from medical innovation and job creation," lobbying group AdvaMed’s president & CEO Stephen Ubl added. "This tax is already resulting in layoffs, reduced investments in R&D and delays in significant capital improvements. We urge Congress to act swiftly and repeal this job-killing, innovation destroying, anti-competitive tax."

The tax took effect at the start of the year over the objections of the largest lobbying organizations in the medtech industry, but the fight is not over, the groups vowed.

"While the first payments of the medical device tax may have been collected, the resolve and commitment of the medical technology community is stronger than ever to put an end to this bad policy," Leahey said. "MDMA and our members remain committed to repealing the medical device tax, but it shouldn’t take more job losses and forgone therapeutic advancements to highlight just how damaging this policy is to a unique American success story."

Device makers lost valuable ground in the battle when the tax was left out of the fiscal cliff negotiations at the end of the year, but industry leaders have been optimistic about the amount of support they’ve been able to cobble together in the Upper Chamber, pointing to a recent letter supported by Democratic Senators in favor of repealing the tax.

AdvaMed’s Ubl issued a separate letter to Congress this month, asking lawmakers to reconsider a pattern of decisions that "are weakening the medical technology industry in the United States," including the medical device tax; reimbursement cuts for diagnostics, imaging and durable medical equipment; cuts to physician payments; and a competitive bidding program for diabetes test strips.

"These types of proposals may serve the short-term interests of Congress to find savings or offset temporary extensions of other policies, but they ignore the longer-term cumulative impact these policies have on patient access to appropriate treatments and cures," Ubl wrote. "At a time when the federal government is working to promote investment in the U.S. industries of the future, reduce health care costs, and improve the quality of medical care, it would be counterproductive for Congress to continue to look to the medical technology industry as a source of revenue through repeated cuts and harmful tax policy."

Ubl noted that the device tax is "at the top of the list of damaging policies."

Medical Imaging & Technology Alliance executive director Gail Rodriquez reiterated some of Ubl’s sentiments in the joint press release issued this week, warning that U.S. jobs and innovation are at risk.

"In spite of the clear economic and clinical value of medical imaging and radiation therapy technologies, Congress has implemented a job-killing device tax, leaving medical device manufacturers with little choice but to reduce their workforce and cut funding for R&D," Rodriguez said in prepared remarks.

RSS From Medical Design & Outsourcing

  • Emuge expands solid carbide thread mill program with new 3XD sizes
    Emuge is now offering an expanded line of Solid Carbide Thread Mills in their popular THREADS-ALL Program, to include new 3XD sizes designed for maximum reach. A total of 17 new sizes have been added, from miniature to standard size tools, providing maximum versatility in a wide range of thread milling applications. The 3XD THREADS-ALL […]
  • Start of helpful humanoid robots? CITEC uses compact LDS component as sensor array
    Editor’s Note: LaserMicronics, a service provider for laser-based manufacturing, has released the whitepaper “Robot hand with a sensitive touch: LDS tactile sensors for sensorimotor skills.” The paper describes a 2014 project from the CITEC department at Bielefeld University in Bielefeld, Germany, where researchers created a tactile sensor resembling a human fingertip. The sensor was then […]
  • Nature meets technology: Festo’s BionicANTs cooperate to solve a common task
    Editor’s Note: Festo, an industrial control and automation company, has released the whitepaper “BionicANTs: Cooperative behavior based on a natural model.” The paper describes the BionicANT, a creation of Festo engineers that duplicates the physical anatomy of its natural counterpart and reproduces the insect’s cooperative behavior. Festo engineers have used the delicate anatomy of an […]
  • Acorn Regulatory streamlines approval process drug-device manufacturers
    Acorn Regulatory, an ISO-certified medical device and pharmaceutical consulting firm, is streamlining procedures for U.S. manufacturers of drug-device combinations with customized programs that successfully overcome challenges in meeting European regulatory approvals. Focusing on small to mid-size companies, Acorn Regulatory has put in place a comprehensive step-by-step process that provides the correct regulatory pathway for medical […]
  • Athermal laser machining cuts bioabsorbable polymers and more
    A the recent MD&M East trade show in New York, Norman Noble, discussed the capability of athermal laser manufacturer. The company has developed the Noble S.T.E.A.L.T.H. (System To Enable Ablation Laser Technology Haz-free). The athermal laser machining process was developed to create precise features in any material, including bioabsorbable polymers, shape memory metals and other […]
  • Exciting possibilities for metallic glass in the medical device world
    Researchers are exploring the potential of metallic glass as a versatile, pliable material that is stronger than steel, with a bevy of possible medical device applications. Yale University engineers have discovered a unique method for designing metallic glass nanostructures across a wide range of chemicals, a technique that could have applications for everything from watch […]
  • Strong Precision Technologies’ medical divisions to unify under MedTorque brand
    Strong Precision Technologies announced on July 2, 2015, that its two medical divisions will now go to market under a single brand, MedTorque. The move reflects the increasing integration of the division formerly known as Inland Midwest with MedTorque, its sister division in Kenosha, WI. “We will continue providing our customers with the personalized level of service […]
  • Olympus offers next-day product replacement guarantee for medical devices
    Olympus, a medical and surgical procedures solutions company, announced that it is guaranteeing next-day replacements for surgical equipment at no additional charge. Olympus is the first surgical product manufacturer to offer this type of guarantee. The service became available to customers with an Olympus Full Service Agreement earlier this year. “Canceled procedures can be costly for healthcare facilities […]
  • More accurate prediction on prognosis in multiple myeloma from SkylineDx
    SkylineDx, a biotechnology company specializing in the development and commercialization of genetic tests, is launching its MMprofiler assay. This test enables clinicians to more accurately predict the prognosis of patients with multiple myeloma (bone marrow cancer) than traditional methods. The MMprofiler measures the activity of 92 genes which are directly or indirectly related to the […]
  • Flint Mobile swaps card reader for camera, accept mobile payments anywhere
    Flint Mobile, the swipe-free mobile payments app, has significantly expanded its payment management and loyalty capabilities for small, service-centric businesses, like the ones run by on-the-go medical equipment professionals. The toggle-free mobile technology makes the process quite simple for both parties, as all transactions are conducted through the mobile device’s camera without the need of any external […]
  • Should scientists be allowed to genetically alter human embryos?
    Scientists have at their disposal, a way to explore the possible prevention of genetic diseases before birth. But should they? Currently, the most promising path forward involves editing the genes of human embryos, a procedure threaded with controversy. An article in “Chemical & Engineering News” (C&EN), the weekly newsmagazine of the American Chemical Society (ACS), parses […]

Leave a Reply