MDMA Board Members Urge Quick Action to Repeal the Medical Device Tax
Tuesday, March 05, 2013
WASHINGTON, DC – Highlighting the job losses and negative impact to patient care already caused by the medical device tax, leaders in the medical technology industry urged Members of Congress at a hearing today to act quickly to repeal a policy that is threatening America’s leadership position. Board members of the Medical Device Manufacturers Association (MDMA) noted that while the 2.3% device tax has only been enacted for two months, it has led to the loss of thousands of jobs and approximately $200 million being sent to the I.R.S. instead of invested in job creation and R&D. The hearing was held by the House of Representatives Ways and Means Subcommittee on Oversight to examine tax provisions contained in the Affordable Care Act.
"If we lose America’s leadership position in medical technology innovation – and the great jobs and all the other benefits that come with it – we will never get it back, and countless communities will never look the same,” said Dan Moore, Chairman of MDMA and President & CEO of Cyberonics, Inc. "None of us want to have to explain to our children one day why they don’t have the opportunity to work in the same dynamic industry as their parents did, focused on improving the human condition. I urge you to support the repeal of the medical device tax which is harming innovation, job creation, and most importantly, patient care.”
"We have already made the difficult decision to lay off employees, forego future hiring and cut our R&D spending,” said Walt Humann, MDMA Board Member and President and CEO of OsteoMed. "The negative consequences of the device tax have been felt at OsteoMed, and Congress must do everything it can to eliminate this onerous policy.”
"While each and every day is a challenge for medical technology innovators to balance the impact of the device tax with the goals of improving health care, bipartisan momentum continues to build for efforts to repeal this policy,” said Mark Leahey, President and CEO of MDMA. "One job lost is one too many, and the thousands lost to date are devastating. As the real world consequences of the tax surface, more Members of Congress are taking notice.”
MDMA continues to be the leading voice urging support for legislation to repeal the medical device tax, which currently has 203 co-sponsors in the House of Representatives (including 25 Democrats) and 28 co-sponsors in the Senate (including 4 Democrats).