MEDICAL ALLEY, Minn.--(BUSINESS WIRE)--The medical device excise tax, which studies have shown chills innovation, reduces employment, slows hiring plans, and freezes capital investments has been fully repealed by Congress just days before it was slated to come back into effect. The tax had been suspended twice for a total of four years since 2016, but its continued existence kept medical device innovators from making plans with longer or unclear payback periods.
“We’re glad to see Congress take the sensible step of fully repealing the medical device tax instead of opting for another suspension,” said the Medical Alley Association President and CEO, Shaye Mandle. “Device innovators now have the certainty they need to take bold steps, make bigger R&D investments over the long haul, and pursue the next generation of devices that will make patients’ lives better, longer.”
The 2.3% tax on the sale of medical devices disproportionately hurt early stage companies when it was collected previously, particularly those seeking FDA approval for their flagship device, as well as patients, who were forced to wait longer for critically necessary devices to reach the market. The tax also runs counter to the work going on in both the public and private sectors to decrease the healthcare cost to patients and to drive extraneous costs out of the system.
The Medical Alley Association is thankful for the tireless work of Minnesota’s political leaders, most notably Sen. Amy Klobuchar, who has led the fight for repeal for many years. MAA is also grateful to Rep. Tom Emmer, Rep. Dean Phillips, Rep. Angie Craig, and the rest of Minnesota’s congressional delegation, as well as Gov. Tim Walz and state officials for their support of healthcare innovators and patients.
About the Medical Alley Association
Founded in 1984, the Medical Alley Association supports and advances the global leadership of Medical Alley’s healthcare industry and its connectivity around the world. MAA delivers the collective influence, intelligence and interactions that support Medical Alley. - www.medicalalley.org