CLSA Urging Congress to Repeal Medical Device Tax by Year’s End
Dec. 19, 2017
We are pleased to share that on Dec. 18, The Orange County Register published an op-ed from CLSA President & CEO Sara Radcliffe and CLSA Board Chairman Don Bobo (Corporate VP, Strategy & Corporate Development of Edwards Lifesciences), on the need for Congress to repeal the medical device tax. You can view the piece via the CLSA website, OC Register or on Twitter.
This month, Reps. Erik Paulsen (R-Minn.) and Jackie Walorski (R-Ind.) and House Ways & Means Committee Chairman Brady (R-Texas) introduced new legislation to provide a 5-year suspension of the medical device excise tax (H.R. 4617). The current suspension of the 2.3% medical device excise tax expires Dec. 31, 2017, and has not been addressed this year due to healthcare and tax reform packages taking all of the oxygen out of the room.
CLSA, along with our national medtech trade association partners AdvaMed and MDMA, remain committed to a full and permanent repeal of the medical device tax. This bill provides an immediate and long-term reprieve of the tax (which is otherwise set to reactivate in the new year), offering an important intermediary step toward full repeal. CLSA issued a statement on the release of H.R. 4617, supporting the bill and urging swift action before the end of the year. The full statement is available here.
We are hopeful the bill will be advanced prior to year’s end, potentially as part of a government funding bill or Continuing Resolution. CLSA continues to urge our delegation to act on at least a long-term suspension (if not full repeal) before year’s end. Our understanding is that House Leadership has indicated a commitment to address the tax in January, even though they are aware of the significant burden that will be placed on companies having to pay the tax in the interim (the tax will reactivate effective Jan. 1, 2018 and will be paid every two weeks by affected companies). We continue to press on our House delegation members for more urgent action, and at a minimum are asking members to urge leadership to make a public commitment that the tax will be addressed as soon as possible.
Click here to visit CLSA’s Digital Action Center to urge your member of Congress to scrap the medical device tax on innovation. Questions? Please contact Adam Lotspike, CLSA’s Associate Director of Federal Government Relations (email@example.com).