2.3% Medical Device Tax Suspension
Jan. 17, 2016
In Dec. 2015, President Obama signed a nearly $2 trillion spending package to fund the federal government through fiscal year (FY) 2016. Included in this law was a two-year suspension of the 2.3 percent medical device excise tax (until 2017). Although this important action does not end CLSA’s fight for permanent repeal of this innovation-stifling tax, the temporary suspension of the tax is a significant victory for the medical device industry and life sciences sector as a whole.
Since the inception of the tax (established as a mechanism to help pay for the Affordable Care Act in 2010), CLSA has (initially through its legacy organizations, BayBio and CHI) worked in close collaboration with a variety of stakeholders, including national trade associations like the Medical Device Manufactures Association (MDMA) and the Advanced Medical Technology Association (AdvaMed), and our medical device sector members to demonstrate to the California congressional delegation the harmful nature of this tax.
Through our advocacy efforts, several bipartisan members of the California congressional delegation, especially Representatives Scott Peters (D-San Diego) and Mimi Walters (D-Irvine), have helped lead the charge in not only supporting the temporary suspension of the tax, but also calling for a permanent repeal. Further illustrating CLSA’s years of successful advocacy on this issue, this past June, 27 bipartisan members (more than one-half) of the California congressional delegation voted in favor of a bill providing a permanent repeal of the medical device excise tax (H.R. 160).
Click here to view CLSA’s statement lauding the suspension of the medical device tax. CLSA looks forward to continue working on behalf of our membership and alongside our many delegation champions to enact a full and permanent repeal of the tax.
For questions, please contact Jenny Carey, CLSA’s Director of Federal Government Relations and Alliance Development (email@example.com).