150+ House members call for repeal of medical device tax

More than 150 lawmakers are pushing for the repeal of the ACA's medical device tax, reports The Hill.

On Tuesday, 179 members of the House of Representatives — 43 of whom are Democrats — signed a letter to Speaker of the House Paul Ryan, R-Wis., calling for the tax's repeal.

The Obama administration imposed the tax in 2013 as a funding mechanism for the ACA. The tax, which places a 2.3 percent tariff on the sale of certain medical devices, was temporarily suspended in 2015.

"The suspension of the medical device tax expires on January 1, 2018, and it is critical to the health and sustainability of this vital American manufacturing industry that this tax is not once again applied to its products," the lawmakers wrote in the letter.

Proponents of the repeal point to federal data that shows the medical technology industry workforce decreased by 28,834 jobs after the medical device excise tax took effect. Opponents believe the device industry exaggerates the tax's adverse effects and say the tax will provide crucial funds to expand healthcare to more Americans.

More articles on supply chain:

FDA OKs expanded use for Alexion's ultra-rare disease drug
Survey: 61% of patient advocacy groups have favorable view of devicemakers
Hospitals grapple with medical supply shortages in wake of Hurricane Maria: 4 things to know

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Articles We Think You'll Like

 

Featured Whitepapers

Featured Webinars