The U.S. Senate passed legislation that includes a full repeal of the medical device tax — a 2.3 percent tax on a range of medical devices and products which previous research has shown to have minimal benefits for doctors, patients and manufacturers.
The medical device tax repeal provision was passed by the U.S. House of Representatives prior to the Senate vote.
The medical device industry is an important part of the Warren County economy.
EDC Warren County President/CEO Ed Bartholomew said “we are very pleased that an agreement has been reached to permanently eliminate the medical device excise tax which was scheduled to be reinstated on Jan. 1.”
He said impacted medical device firms within the Glens Falls/Queensbury region include Benton Dickinson( CR Bard), Angiodynamics, Medline, MDI Molder Devices Inc. and Sterigenics, Praxis that have, collectively, approximately 2,500 employees.
“Without this Congressional action , a severe economic hardship would have been imposed on medical device manufacturing and its employment in the region, thereby causing very significant economic impact to our local and regional economy,” Bartholomew said.
“We wish to thank Sen. Chuck Schumer for his tireless efforts in leading this initiative to repeal this tax as well as the support of Sen. Gillibrand and Rep. Elise Stefanik,” he said. “Our region features a high concentration of medical device manufacturing employment which contributes greatly to our local and regional economy. This legislative action demonstrates that important and vital economic concerns can be accomplished in a bipartisan manner.”
“Without this burdensome tax, the U.S. medtech industry—the world leader in medical innovation—can focus now on developing the next generation of treatments and cures for patients in need, and creating good-paying, high-tech jobs in communities across the country,” said Scott Whitaker, president and CEO of the Advanced Medical Technology Association.
Mike Guerra, president and CEO of California Life Sciences Association, noted in a company press release that full and permanent repeal of the medical device excise tax will ensure that “the U.S. does not jeopardize [its] position as a global leader in medical technology innovation.”
“Full repeal of the medical device excise tax will not only benefit patients in California and around the world, but it will also be a shot in the arm to medical technology innovators, encouraging them to do what they do best: create good-paying jobs and invest in cutting-edge science to develop new technologies that improve human health,” Guerra said in the release.
