Medical device tax: Sen. Hagan still searching for a pay-for to foster repeal

December 7, 2012 by MassDevice staff

Senator Kay Hagan (D-N.C.) is looking to her state's business leaders to find a way to repeal the 2.3% medical device tax and make up for the make up for the $30 billion in revenue it's slated to raise to support healthcare reform.

Senator Kay Hagan (D-N.C.)

Senator Kay Hagan (D-N.C.) is looking for a "fiscally responsible" way to repeal the medical device tax and spare her state's medtech companies, aiming for a viable pay-for to make up for the $30 billion the 2.3% tax is expected to raise over 10 years.

In an email interview with MassDevice.com, Hagan told us that she's having conversations with business leaders in her state to brainstorm ideas on how to replace the funding for healthcare reform in a manner that leaves medtech resources intact.

"My number one priority is getting North Carolina back to work, and I believe that increasing the number of these good-paying jobs will be essential to our state's economic security," Sen. Hagan told us.

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Hagan opposed the medtech tax from its inception, joining Senate colleagues in warning Senate Majority Leader harry Reid that the fee "could have significant ramifications for an industry."

"The medical device fee is expected to raise a significant amount of revenue, and delaying or repealing it will cost the federal government billions in foregone revenue," Sen. Hagan told MassDevice.com this week. "Given the impact that this fee will have on North Carolina companies, I am open to exploring a variety of legislative options that relieve our state of its burden."

Read the full text of the exchange below:

MassDevice: There's a great deal of fear in the medical device space that the excise tax will lead to US job losses and to more companies sending operations offshore. Are you hearing similar concerns from the NC medtech community?

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