Health Care Reform, Device Tax
What is the medical device tax?The $20B tax was included in the Affordable Care Act that was signed into law in 2010. The amount is based on a 2.3% excise tax that will be levied on the total revenues of a company, regardless of whether a company generates a profit, starting in 2013. Many companies will owe more in taxes than they generate from their operations. The result will be devastating to innovation, patient care and job creation.
What is MDMA’s position?
MDMA was against the medical device tax from the beginning, and continues to work for a full repeal of this onerous provision. The overwhelming majority of innovation from the medical device industry comes from smaller manufacturers who work closely with clinicians and engineers to develop the therapies and treatments of tomorrow. If it is not repealed, this tax will stifle innovation, harm patient care and weaken the position of the United States as the global leader in medical device innovation.
MDMA has pointed out that there is no data or studies that show the costs of this "innovation tax" will be offset due to an increased pool of insured beneficiaries receiving treatment. In fact, since the majority of products impacted are used in acute care settings where there are legal obligations to treat a patient, the effect of expanded coverage is not likely to increase utilization.
MDMA continues to work with elected officials and our members on the bipartisan proposals to eliminate the medical device tax to ensure that patient care, innovation and job creation continue to thrive.