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CLSA Wire

CLSA Helps Lead Sector Efforts to Suspend Medical Device Tax for 2 Years
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Jan. 29, 2018
By Adam Lotspike

On Jan. 22, Congress passed a 2-year suspension of the medical device excise tax, retroactive to Dec. 31, 2017, providing much-needed relief for California’s medical device sector. The suspension of the tax was included as a provision of H.R. 195, the Continuing Resolution (CR) that will fund the federal government short-term until Feb. 8 (3 weeks). Also included within the package is a 6-year reauthorization of the Children’s Health Insurance Program (CHIP).

While CLSA did not take a public position on the overall bill, we are strongly supportive of the short-term suspension of the medical device tax included in the legislation. We released a statement in support of Congress’ action to suspend the medical device tax, available our website here, and on Twitter here.

According to CLSA’s newly released 2018 California Life Sciences Industry Report, California is home to 1,796 medical device firms employing over 77,200 people – more firms and employees than any other state in the nation, and representing 18.5% of the nation’s med tech workforce – making the impact of the tax on our state particularly troublesome.

As you may know, CLSA has opposed the medical device excise tax since it was proposed and implemented as part of the Affordable Care Act in 2010, and we have been working ever since to see it permanently repealed. We certainly appreciate and applaud the two-year moratorium on the device tax as an important step toward preserving our state’s and nation’s vibrant medical device sector, and continue to work aggressively in close collaboration and coordination with our membership, our national trade association partners at AdvaMed, MDMA and MITA, and alongside our California Congressional Delegation toward a permanent long-term repeal of the device tax.

Questions? Please contact Jenny Carey, CLSA’s Vice President of Federal Government Relations & Alliance Development (jcarey@califesciences.org).