MASSDEVICE ON CALL — A push by Sen. Orrin Hatch (R-Utah) to repeal the medical device tax gained some momentum this week when fellow Republican Lamar Alexander (Tenn.) signed on to his Medical Device Access & Innovation Protection Act.
"This bill would repeal a tax that will raise premiums for patients and destroy jobs in a fast-growing and life-saving industry – including as many as 1,000 jobs in Tennessee alone," Alexander said in prepared remarks. "Congress needs to repeal the entire health-care law and replace it with reforms that lower the cost of health care, but at the very least it should start with the repeal of this senseless medical device tax that will only make health care more expensive."
The tax, a 2.3% levy on all U.S. sales of medical devices, is part of the Patient Protection & Affordable Care Act. It was originally intended to raise about $20 billion over 10 years, but it’s actually set to raise more than $30.5 billion, a MassDevice.com tax analysis uncovered.
Another repeal measure sponsored by Rep. Erik Paulsen (R-Minn.) has more than enough sponsors to pass in the U.S. House of Representatives and may come to a vote this summer.
"As some of my colleagues have become more aware of what the consequences are, they’ve been paying more attention and just literally slowly signed on one after another after another almost every week for the last 6 months," Paulsen told MassDevice.com in February. "I actually expect that this is going to move forward in the House sometime this year, hopefully sooner than later. That’s a question that’s up to leadership."
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