The US House of Representatives Erik Paulsen and Jackie Walorski have introduced H.R. 4716, a new legislation which will suspend the medical device tax for five years.
The legislation suspends until December 2022 the job and innovation destroying 2.3% medical device excise tax imposed on medical device companies originally set up as part of the Affordable Care Act.
In 2015, a bipartisan coalition in the House and Senate came together to approve a two-year suspension of the tax, which is due to expire at the end of this year.
According to Advanced Medical Technology Association (AdvaMed), the five-year suspension will provide medical technology innovators with confidence that this tax will not go back into effect.
AdvaMed also claimed that medtech companies can reinvest millions during the current suspension, which allows to create new jobs, capital improvements and R&D with the creation of next generation technologies for patients.
AdvaMed President and CEO Scott Whitaker said: “We are committed to continuing this reinvestment in innovation if the tax is suspended on a long-term basis going forward.”
“However, while we applaud this proposed five-year suspension, it is a only a first step toward the ultimate goal to fully repeal the medical device tax and unleash the full promise of job growth and medical innovation for American patients.”
The Medical Imaging & Technology Alliance (MITA) executive director Patrick Hope said: “Allowing the device tax to restart in 2018, even temporarily, would amount to a tax hike on the industry and could result in job loss as well as disruptions to the medical imaging industry’s ability to innovate.
"Ultimately, we hope that Congress will continue to work toward full repeal of the medical device tax to safeguard high-paying, high-quality industry jobs and ensure that patients have access to the latest medical imaging technology.”
Image: The US House of Representatives extended the suspension on medical device tax. Photo: courtesy of anankkml / FreeDigitalPhotos.net.