(Washington, D.C.) – Representative Charlie Dent (PA-15) hailed a large bipartisan vote by the House of Representatives to cauterize the Medical Device tax that has been leading to a loss of job, research funding and growth potential for American device manufacturers.
H.R. 160, the Protect Medical Innovation Act, passed by a vote of 280 to 140. “However you feel about the 2010 health care law on the whole, reasonable members of the House can all agree that the legislation has its flaws. One of the most glaring deficiencies in the law is the medical device tax, designed to extract $26 billion from the industry over 10 years,” said Dent.
The medical device industry currently supports over 75,000 jobs in Pennsylvania. The law affects companies including Orasure Technologies, Olympus, Boas Surgical, Hover Tech International and B. Braun which all have a strong presence in the 15th District.
“People should know this tax is not levied on a company’s profits – it is levied on its revenue. That’s outrageous. This tax is stifling critical innovation and threatening high-quality jobs in my district. More importantly, it is increasing costs for consumers on products which are an absolute necessity of life for those who rely on them, such as prosthetics, pacemakers, and artificial hearts. Costs are also being passed on to consumers at all levels through increased insurance premiums and bills from medical providers,” Dent explained.
Bruce Heugel, the Chief Financial Officer for medical device manufacturer B. Braun, recently testified before the Senate Finance Subcommittee on Health Care that his company has been forced to drastically reduce investments in research and development and that the company’s total American medical device workforce is down by 200 through budget reductions.
“This tax is taking good-paying, 21st Century jobs away from people in the communities I represent,” said Dent. “The House rightly pulled the plug on the device tax. The Senate should take this vital bill up quickly and pass it,” Dent concluded.
CONTACT: Shawn Millan (610) 770-3490