Minneapolis, MN – On Wednesday, April 10 2019, the United States House of Representatives introduced the Protect Medical Innovation Act to permanently repeal the harmful medical device excise tax. Medical Alley Association thanks the bill’s authors, as well as its hundreds of bipartisan cosponsors, including Minnesota Representatives Jim Hagedorn (R), Angie Craig (D), Dean Phillips (D), Tom Emmer (R), Collin Peterson (D) and Pete Stauber (R) for cosponsoring this bill.
“With support from the Senate and now the House, medical innovators are one step closer to the much- needed certainty a full repeal will provide,” said Shaye Mandle, President & CEO of Medical Alley Association. “The looming possibility of the Medical Device Tax returning has subjected innovators to great uncertainty, hampering their ability to produce life-saving products. We look forward to working with Congress towards a full repeal once and for all.”
The Medical Device Excise Tax has a downstream impact on the entire medical technology innovation ecosystem. This is due to it being levied on revenues rather than profits, making it particularly onerous for small and medium-sized device companies. These companies make up 80 percent of the industry and are the source of much of its innovation. Minimally-invasive procedures, more accurate diagnostics and reductions in both total hospitalizations and length of stay are just some of positive impacts patients have seen thanks to innovations in medical devices. Taxing the development and manufacture of these technologies imposes unnecessary penalties on them and diminishes the cost savings they otherwise would have produced. Medical Alley Association will continue to work towards the passage of this vital legislation.
Founded in 1984, the Medical Alley Association supports and advances the global leadership of Medical Alley’s healthcare industry, and its connectivity around the world. MAA delivers the collective influence, intelligence and interactions that support Medical Alley.