A Massachusetts amendment to evaluate the 2.3% medical device excise tax fell flat on the Senate floor with a 24-to-14 vote against the measure. The amendment would have required a sweeping review of the tax’s impact in the Commonwealth’s life science industry.
The excise tax took effect in January 2013 and is intended to help fund healthcare reform. Supporters of the analysis amendment say the tax will cost the state’s medical device industry more than $400 million per year.
Opponents of the analysis called the bill a waste of government time and resources, given that the state can’t strike the federal tax.
During his campaign in June, long time House Rep. and Senate hopeful Ed Markey (D-Mass.) promised to introduce an amendment to the Affordable Care Act to reduce the medical device tax. Legal analyst Kristian Werling recently explained in an interview with MassDevice.com why the tax is catching the industry off guard and described challenges facing manufacturers.