Today, the Medical Imaging and Technology Alliance sent a letter to members of Congress, urging them to repeal the medical device tax prior to Jan. 29, the date medical device companies are required to resume payments after a two-year suspension.
The letter, sent to House Speaker Paul Ryan, R-Wisconsin, Senate Majority Leader Mitch McConnell, R-Kentucky, House Minority Leader Nancy Pelosi, D-California, and Senate Minority Leader Charles Schumer, D-New York, cites grievances against the device tax.
“While MITA was disappointed that the medical device tax was not repealed before the end of 2017, we hope that Congress will take action to abolish the tax before the end of the month,” said Joe Robinson, chairman of the MITA board of directors and senior vice president of health systems solutions at Philips Healthcare. “Fully repealing the device tax before our first payment is due on January 29 would mitigate disruption to the medical imaging industry’s ongoing innovation, investment in research and development and hiring of U.S.-based employees, all of which were accelerated during the suspension of the tax.”
The U.S. medical technology industry saw its jobs ranks tumble by nearly 29,000 during the medical device taxation period, according to the Department of Commerce. The letter also states the tax was “directly responsible” for reducing manufacturing investments and research and development funds—slowing innovation and patient access to the most up-to-date care.