Contact Us

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 If it is not repealed, this tax will stifle innovation, harm patient care and weaken the position of the United States as the global leader in medical device innovation.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.
MDMA Statement on CMS’ Proposed Rule on Physician Payment Disclosure
12/14/2011

WASHINGTON – MDMA President and CEO Mark Leahey issued the following statement in response to the Centers for Medicare and Medicaid Services’ (CMS) proposed rule on physician payment disclosure:

“We are pleased that CMS has finally released the proposed regulation and we look forward to reviewing and providing comments from our members.  The delay publishing the proposed regulation illustrates the complexities associated with the law and we urge CMS to consider all...

Bill to Repeal Medical Device Tax Surges to 218 Co-Sponsors
11/04/2011

Congressman Erik Paulsen's legislation to repeal the 2.3% medical device tax continues to gain momentum in the House of Representatives. Today he announced that his bill gained 218 supporters, a significant milestone.

 "Medical device innovation is not just a Minnesota success story, it's a true American success story," said Congressman Paulsen. "This ill-conceived tax on innovation will jeopardize jobs and reduce access to new, life-saving technologies for Americans all over...

Broad Coalition Urges Congressional Leaders to Repeal Medical Device Tax
07/18/2011

WASHINGTON, DC -- A broad coalition of medical technology companies and leading associations wrote to Congressional leaders today urging them to repeal the onerous medical device tax which will harm innovation and patient care.  The letter had over 420 signatories, including the Medical Device Manufacturers Association (MDMA), the U.S. Chamber of Commerce, the National Association of Manufacturers (NAM), the National Federation of Independent Business (NFIB), the...

MDMA Submits Comments on Accountable Care Organizations Proposal
06/06/2011

WASHINGTON, DC – MDMA submitted comments today regarding the proposed regulations for Accountable Care Organizations (ACOs), highlighting the importance of ensuring access to new and innovative medical technologies for patients and providers.

“While MDMA supports the goals of ACOs to improve patient care and delivery and to eliminate waste and inefficiencies, we remain concerned that the proposed regulations could adversely impact access to new and innovative medical...

MDMA Comments on Anti-Trust Concerns with ACOs
06/01/2011
GPOs Should Be Covered Under ‘Sunshine” Provisions, Provide Transparency
04/08/2011

WASHINGTON, DC -- The Medical Device Manufacturers Association (MDMA) reiterated their belief that payments to group purchasing organizations (GPOs) should be subjected to “sunshine” provisions to increase transparency and competition in the delivery of healthcare.  MDMA issued preliminary comments to the Centers for Medicare and Medicaid Services (CMS) following the “Special Open Door Forum: Transparency Reports and Reporting of Physician Ownership or Investment Interests” that...

MDMA Statement on "Accountable Care Organizations" Proposed Regulation
03/31/2011

WASHINGTON, DC -- Mark Leahey, President and CEO of the Medical Device Manufacturers Association (MDMA), today issued the following statement in response to the proposed regulation for Accountable Care Organizations (ACOs):

“MDMA remains firmly committed to ensuring that patients have timely access to safe and effective products and that nothing compromises the physician-patient relationship.  As we have stated in the past, MDMA opposes any...

MDMA Remains Committed to Repealing Medical Device Tax
03/23/2011

WASHINGTON, DC – On the one year anniversary of the 2.3% medical device excise tax that was signed into law as a part of The Affordable Care Act, the Medical Device Manufacturers Association (MDMA) today reiterated their commitment to repealing the tax so that innovation and job creation can thrive.

“MDMA and its members strongly believe that the device tax included in health care reform will harm patient care and thwart innovation and job creation at a time...

MDMA Applauds Bills to Repeal the Medical Device Tax
01/25/2011

WASHINGTON, DC – Mark Leahey, President and CEO of the Medical Device Manufacturers Association (MDMA) issued the following statement today regarding the introduction of legislation in Congress to repeal the medical device tax:

“We applaud Senator Orrin Hatch and Congressman Erik Paulsen for their leadership and recognition of just how critical the medical technology industry is to the economic engine in America,  and we urge Republicans and Democrats to come together to...

Medical device makers: New tax will cost jobs
09/01/2010
Associated Press

BOSTON (AP) -- Medical device manufacturers are bristling over a key provision in the nation's new health care law which they say forces them to shoulder an unfair cost of expanded insurance coverage.

A 2.3 percent excise tax on companies that supply medical devices like heart defibrillators and surgical tools to hospitals, health centers and ambulance services will cost medical device manufacturers an estimated $20 billion in new taxes over the next decade. And they say that will...