Medical Device Tax Repeal: Good for Patients and Good for the Economy

Medical Device Tax Repeal: Good for Patients and Good for the Economy

This piece was originally published in the November 2016 issue of electroindustry.

Andy Dhokai, MPPA, Director, Federal Relations, MITA

Radiologist examining MRI scans

As congressional action ceased as a prelude to national and local elections, MITA continued to make the case for full repeal of the 2.3 percent excise tax on the sale of medical devices enacted as part of the Affordable Care Act.

We are using the first year of a two-year suspension of the tax, passed in December 2015, to show members of Congress and the public that repealing the tax will boost patient access to medical imaging services, investment in research and development, and workforce expansion.

The first step of this process involved completion of a survey in August demonstrating the effects of the two-year suspension. The survey asked companies how they might spend savings gained from suspension or repeal of the tax. Respondents highlighted their commitment to patient access to medical imaging services, greater investment in research and development, and hiring more workers.

The survey results have been used at a series of recent events to thank congressional champions of device tax repeal. Many events took place at company facilities and included executive roundtable discussions. MITA presented several congressmen with Medical Innovation Awards at these events and Members discussed how their companies could use savings generated by repeal of the tax.

At the time of this writing, Senators Richard Burr (R-NC) and Patty Murray (D-WA), and Representatives Suzan DelBene (D-WA), Charlie Dent (R-PA), Bill Flores (R-TX), Derek Kilmer (D-WA), Pat Meehan (R-PA), Erik Paulsen (R-MN), Scott Peters (D-CA), Kyrsten Sinema (D-AZ), and Todd Young (R-IN), received awards. More events are being planned with other members of Congress.

MITA will continue and accelerate its legislative and communications strategies  to underscore why repeal of the device tax is good policy.  First and foremost it is good for the health and wellness of the citizens of the U.S. A robust medical imaging industry is also an engine of innovation, economic growth and quality employment that is felt positively in many local economies across America.

Read the November 2016 issue of electroindustry.

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