One of the top boosters for the medical device industry in Congress doesn’t see a major repeal of health care reform taking place.
Still, Rep. Erik Paulsen
, is hopeful some aspects of the Patient Protection and Affordable Care Act will change, including an upcoming tax on medical devices that the Minnesota Republican believes will stifle innovation.The nearly 50-member House Medical Technology Caucus that Paulsen co-chairs launched a website on Monday to help industry executives better connect with Congress about the tax and other issues.
Speaking at a Monday event sponsored by the life sciences trade group LifeScience Alley, Paulsen said the tax — a 2.3 percent excise tax on most medical devices that goes into effect in 2013 — will reduce medical technology jobs in the North Star State and across the country.
The government shouldn’t burden a medical technology industry that is one of the “bright spots on the economy,” Paulsen said.
The congressman has been trying to repeal the device tax ever since PPACA passed a year ago. His opinions carry more weight now that Republicans are in the majority in the House, and he also recently gained a seat on the powerful House Ways & Means Committee.
Paulsen has about 100 cosponsors for his Protect Medical Innovation Act to overturn the device tax. Sen. Orrin Hatch (R-Utah) is sponsoring a companion bill in the Senate. Paulsen is hopeful he can gather bipartisan support to pass the measure in much the same way that Republicans and Democrats recently came together to overturn a section of health reform that increased tax filing requirements for businesses.
Paulsen acknowledges there’s a hurdle: The device tax is supposed to yield $20 billion in revenue over 10 years. “How do you make up for $20 billion?” he said.
Congress may also pass other changes to health reform this year, including an easing of requirements on what people can buy with their health savings accounts and other similar health insurance savings vehicles. Paulsen is also pushing to make research and development tax credits permanent.
Speaking to a group with a large number of medical technology executives, Paulsen also called for a more industry-friendly Food & Drug Administration. “They’re making it really challenging for companies that want to bring a product to market.”