Medical Device Groups Speak Out Against Tax
Many medical device manufacturer trade groups spoke out firmly against a $40 billion tax on the device industry.
The Advanced Medical Technology Association (AdvaMed) and the Medical Device Manufacturers Association (MDMA) spoke out against the proposed tax that is part of a healthcare reform package passed by the U.S. Senate Finance Committee on Oct. 13.
The package includes a tax on medical devices and diagnostics that would generate $40 billion over 10 years to help pay for reform.
While the groups praised the committee’s push for reform, they added the tax will unfairly burden manufacturers. “It will double the tax burden for America’s most innovative companies in this difficult economic environment—companies that provide jobs to nearly 2 million Americans and lead the world in medical advancements,” says Stephen J. Ubl, president and CEO of AdvaMed.
“MDMA supports bipartisan legislation to improve patient care, reform the insurance industry and promote prevention and wellness,” says a release from MDMA. “The current medical device tax being discussed on Capitol Hill will hinder achieving these objectives.”
The reform package now goes before the full senate for approval.
For more information on AdvaMed, visit www.advamed.org. For more information on MDMA, visit www.medicaldevices.org.