In a direct appeal to Sen. Harry Reid (D-Nev.), the CEO of Reno-based Orthopaedic Implant Company asked for a repeal of the excise tax on U.S. sales of medical devices.
Itai Nemovicher called on Reid, the Senate majority leader, to reverse part of the Affordable Care Act that puts a 2.3% tax on the device industry. Last year’s attempted repeal of the medical device tax never made it to the Senate floor.
Nemovicher claims 4 out of 5 senators believe the industry tax was a mistake, saying that when the tax is applied to the bottom line, it represents a 29% increase in overall taxes for medical device companies.
The “Protect Medical Innovation Act of 2013,” co-sponsored by Reps. Erik Paulsen (R-Minn.) and Ron Kind (D-Wis.), has garnered support from medical device lobby group AdvaMed and other notable chief executives.
"This tax is draining vitality from our nation’s most innovative industry," Nemovicher said in the letter. "Senator Reid, join your colleagues in Washington and immediately repeal this new and burdensome tax."