SALT LAKE CITY--(BUSINESS WIRE)--BioUtah applauds congressional action to permanently repeal the 2.3% excise tax on the sale of medical devices, first enacted as part of the Affordable Care Act in 2010. Earlier in the week, the U.S. House of Representatives voted to repeal the tax as part of a $1.4 trillion FY 2020 government spending bill, which covers funding for federal agencies. Yesterday, the United States Senate also cleared the spending measure and repeal provision. President Trump is expected to sign the bill.
“BioUtah welcomes permanent repeal of the medical device tax,” said Kelvyn Cullimore, president and CEO of BioUtah. “This is a win for Utah’s medical device industry, and most importantly, a big win for patients whose lives depend on the innovative and transformative work of this critical sector.”
“Finally the death of the job killer,” said Fred P. Lampropoulos, chairman and CEO of Merit Medical Systems, Inc. “Now we can get back to planning and running our business.”
Utah’s governor and congressional delegation — Governor Gary Herbert, Senator Mitt Romney, and Senator Mike Lee, along with Representatives Rob Bishop, Chris Stewart, John Curtis and Ben McAdams, have all strongly supported an end to the tax. “BioUtah appreciates the unwavering support and leadership of our Utah lawmakers in doggedly pushing for repeal,” said Brandi Simpson, CEO of Navigen, and chair of the BioUtah Board of Directors.
Repeal is of paramount importance for numerous Utah medical device companies, both large and small, that manufacture life-saving and life-supporting medical technologies for patients. With passage of repeal, instead of preparing to pay the IRS, these companies can continue to focus on research and investment to continue to propel the next generation of cutting-edge innovation and advance healthcare worldwide.
Earlier this year, Utah medical device companies joined a broad coalition of medical innovators, physician inventors, patient groups, and others to send a letter to congressional leadership urging them to permanently repeal the medical device tax. The letter garnered over 600 signatories, including approximately 30 Utah companies. Utah’s medical device industry is a leading employer in the state and a significant segment of the state’s economy, providing nearly 14,000 jobs and generating $2.2 billion in GDP.
From 2013-2015, the tax was in effect. Since then, the industry has operated under unpredictable, short-term suspensions of the tax that provided little certainty for long-range planning and investment.
BioUtah is an independent 501(c)(6) trade association serving Utah’s life sciences industry. Its member companies reflect a broad spectrum of the industry with strengths in medical device manufacturing and services, research and testing, biotechnology, biopharmaceuticals, and advanced diagnostics, amongst others; and are a key driver of Utah’s economy.