US Senators Elizabeth Warren and Ed Markey have re-introduced a bill that would remove the excise tax on medical devices that is part of the Affordable Care Act.
Warren and Markey, both Democrats, are from Massachusetts.
The bill's re-introduction highlights how many device firms are in Massachusetts. Bot the Democrats are seeking to pay for the repeal by ending tax breaks .
Earlier, the tax was imposed on devices ranging from surgical tools to pacemakers to expand access to health insurance.
MassBio president and CEO Robert Coughlin said: “The growing convergence of medical device and biopharma companies is changing the lives of sick people around the world through the development of new combination products, and powerful diagnostics that allow for personalized medicines.
“Much of that work is being done in Massachusetts, home to more than 480 medical device companies which account for 14% of the state’s exports.
“We thank Senator Markey for reintroducing legislation to repeal the medical device tax, which unfairly penalizes medical device innovation and has the potential to stifle growth and patient access, especially among small manufactures and startups.”
In December 2017, The US House of Representatives Erik Paulsen and Jackie Walorski have introduced H.R. 4716, a new legislation which will suspend the medical device tax for five years.
The legislation suspends until December 2022 the job and innovation destroying 2.3% medical device excise tax imposed on medical device companies originally set up as part of the Affordable Care Act.
In 2015, a bipartisan coalition in the House and Senate came together to approve a two-year suspension of the tax, which is due to expire at the end of this year.
Image: The US Senators have introduced new legislation to end excise tax on medical devices. Photo: courtesy of Regulatory Affairs Professionals Society.