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MDMA Survey Shows Repealing the Medical Device Tax Would Create Jobs, Increase R&D

Wednesday, January 28, 2015  
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MDMA Survey Shows Repealing the Medical Device Tax Would Create Jobs, Increase R&D

WASHINGTON, DC – A new survey conducted by the Medical Device Manufacturers Association (MDMA) shows that if the medical device tax was repealed, the overwhelming majority of medical technology innovators would increase hiring and make new investments in research and development (R&D). The survey was conducted over November and December in 2014, and consists of over 100 responses from medical technology executives.

“I see firsthand everyday the impact the medical device tax has on investing in new jobs and developing new technologies that improve patient care,” said Scott Huennekens, President & CEO, Volcano Corporation and Chairman of MDMA. “This survey clearly shows what med tech innovators have long argued: if you repeal the medical device tax, it will boost job creation and increase investments in the cures and therapies of tomorrow.”

“Broad support continues to grow for repealing the medical device tax, not just in Congress, but across America’s innovation ecosystem,” said Mark Leahey, President and CEO of MDMA. “This destructive policy has thwarted job creation and patient care for too long, and MDMA is dedicated to working with the diverse coalition of stakeholders to get repeal of the device tax across the finish line.”

Top findings of the survey include:

  • 72% of companies slowed or halted job creation in the United States to pay the medical device tax
  • 85% of respondents said that if the device tax was repealed, they would hire new employees in the U.S.
  • 80% of respondents noted that they would increase R&D investments in the cures and therapies of tomorrow
  • When asked how much they would increase their R&D budget, the average increase was 14%

Both the House and Senate recently introduced bipartisan pieces of legislation to repeal the medical device tax in the 114th Congress. Senators Orrin Hatch (UT) and Amy Klobuchar (MN) introduced S. 149, the "Medical Device Access and Innovation Protection Act," along with eight of their colleagues, and Congressmen Erik Paulsen (MN) and Ron Kind (WI) introduced H.R. 160, “The Protect Medical Innovation Act,” which currently has 272 cosponsors.

To read a summary of this survey, CLICK HERE.