New Tax Hurts Innovation, Job Creation & Delivery of Quality Patient Care
WASHINGTON, DC – U.S. Senator Bob Casey (D-PA) today announced legislation to repeal the medical device tax that was included in the Patient Protection and Affordable Care Act (PPACA). U.S. Senators Amy Klobuchar (D-Minn.), Orrin Hatch (R-Utah), John Cornyn (R-Texas), Joe Donnelly (D-Ind.), Richard Burr (R-N.C.), Al Franken (D-Minn.), Pat Toomey (R-Pa.), and Dan Coats (R-Ind.) joined Senator Casey in introducing the Medical Device Access and Innovation Protection Act in the Senate.
“I have talked to small businesses and manufacturers throughout Pennsylvania that have been unfairly burdened by medical device tax,” said Senator Casey. “We have tens of thousands of jobs connected to the medical device industry. This is a common sense measure to improve current law and ensure we are doing everything we can to encourage innovation and job creation.”
Under PPACA, manufacturers of medical devices ranging from surgical tools to bed pans are required to pay a 2.3 percent excise tax hike that will raise nearly $30 billion in revenue over 10 years and that will hinder industry innovation, job creation and the overall delivery of quality patient care. The tax, which took effect in January, is expected to cost device manufacturers roughly $194 million per month putting 43,000 American jobs at risk, according to the Advanced Medical Technology Association (AdvaMed).
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