U.S. Senate Should Move Swiftly to Join House in Repealing Medical Device Tax, Healthcare Leaders Say

Wide U.S. House Vote Margin Sends Clear Signal that Bipartisan Majority Sees Tax as Counterproductive, Harmful to Patients, Medical Innovation

WASHINGTON — Following a two-to-one approval margin in the U.S. House, the U.S. Senate should move expeditiously to pass legislation repealing the Affordable Care Act’s medical device tax and send it to the President’s desk, the head of the Healthcare Leadership Council said today.

The House passed the medical device repeal measure today, 280-140, with more Democrats (46) voting for repeal than in any previous vote. If enacted into law, the legislation would bring an end to the 2.3 percent excise tax that is applied to medical device company revenues.

“The extraordinary margin of this House vote tells us that this is not, by any means, a partisan issue,” said HLC President Mary R. Grealy. “At a time in which we need to encourage more innovation to combat illness, improve patient health and reduce long-term healthcare costs, a significant excise tax on revenues – not profits, but revenues – does just the opposite. It discourages healthcare progress.”

Ms. Grealy said the medical device tax is just the first step Congress should take in addressing health sector taxes, fees and provider payment reductions that are incorporated in the Affordable Care Act.

“We need to ensure that we are expanding healthcare access and elevating healthcare quality. Congress needs to examine these taxes, fees and payment cuts and determine if they are truly working in the best interests of patients and consumers,” she said.