CLSA in the San Diego Business Journal: House Votes to Repeal Medical Device Tax
By Jared Whitlock | San Diego Business Journal
July 25, 2018
The House voted July 24 to repeal a 2.3 percent excise tax on medical device makers, welcome news to San Diego’s array of medical device companies, including NuVasive and ResMed.
In January a Congressional deal to reopen the federal government included a two-year moratorium on the tax, retroactive to Jan. 1, the second delay in the tax. At that time, life sciences groups and companies cheered the suspension, but said they would push for a repeal.
The tax was put in place in 2013 on artificial joints, heart stents and other devices to fund the Affordable Care Act.
The July 24 measure was approved on a 282-132 vote.
“Full repeal is critical to ensuring that the U.S. does not jeopardize our position as a global leader in medical technology innovation. We urge the U.S. Senate to swiftly take up this bill, and repeal the medical device tax once and for all,” Sara Radcliffe, California Life Sciences Association President and CEO, said in a news release.
In January, Dean Irwin, the CEO of Carlsbad-based Ra Medical Systems, said that the suspension provided “breathing room.” He said the tax resuming would amount to millions off its top line, and thus a reduction or a delay in planned hires.
Read at the San Diego Business Journal.