MITA Applauds Introduction of Bipartisan Bill to Permanently Repeal the Medical Device Tax
Bipartisan Legislation Would Repeal the Medical Device Tax and Safeguard American Medical Technology Innovation.
Washington, DC, March 07, 2019 --(PR.com)-- The Medical Imaging & Technology Alliance (MITA) – the leading organization and collective voice of medical imaging equipment, radiopharmaceutical manufacturers, innovators, and product developers – today applauded the introduction of the Protect Medical Innovation Act, a bipartisan bill sponsored by Senators Pat Toomey (R-PA) and Amy Klobuchar (D-MN) that would immediately and permanently repeal the medical device tax. A House-sponsored companion measure is likely to be introduced soon, and broad bipartisan support is expected for both the House and Senate bills.
“We applaud Senators Toomey and Klobuchar for standing up to protect American patients and healthcare innovation from these detrimental taxes,” said Dennis Durmis, Chair of MITA’s Board of Directors. “Permanently repealing the tax – rather than simply delaying it – will ensure the industry is able to adequately invest in research needed to develop the next generation of medical imaging technologies.”
Passed by Congress in 2010, the device tax applies a 2.3 percent levy on the sale of nearly all medical devices sold in the United States, including the high-tech imaging devices used to diagnose and treat serious and life-threatening diseases. Though the tax has been suspended on several occasions in the past – most recently as a part of a federal spending bill in early 2018 – it is slated to go into effect again on January 1, 2020, absent Congressional action.
Research shows the device tax could have extremely negative consequences for medical technology innovation. One estimate suggests it could cause manufacturers to forego up to $2 billion each year in funds that could be put towards research and development. Other studies show the device tax would hit start-up firms, which are some of the biggest drivers of medical innovation, particularly hard and could delay the next generation of medical imaging technologies for years or even decades.
“The American medical technology sector is truly an economic success story, employing millions of hardworking people and pumping billions of dollars into local and regional economies,” continued Durmis. “I urge Congress to pass this bipartisan legislation quickly and without delay.”
The Medical Imaging & Technology Alliance (MITA), a division of NEMA, is the collective voice of medical imaging equipment manufacturers, innovators, and product developers. It represents companies whose sales comprise more than 90 percent of the global market for advanced medical imaging technology. For more information, visit www.medicalimaging.org. Follow MITA on Twitter @MITAToday.
“We applaud Senators Toomey and Klobuchar for standing up to protect American patients and healthcare innovation from these detrimental taxes,” said Dennis Durmis, Chair of MITA’s Board of Directors. “Permanently repealing the tax – rather than simply delaying it – will ensure the industry is able to adequately invest in research needed to develop the next generation of medical imaging technologies.”
Passed by Congress in 2010, the device tax applies a 2.3 percent levy on the sale of nearly all medical devices sold in the United States, including the high-tech imaging devices used to diagnose and treat serious and life-threatening diseases. Though the tax has been suspended on several occasions in the past – most recently as a part of a federal spending bill in early 2018 – it is slated to go into effect again on January 1, 2020, absent Congressional action.
Research shows the device tax could have extremely negative consequences for medical technology innovation. One estimate suggests it could cause manufacturers to forego up to $2 billion each year in funds that could be put towards research and development. Other studies show the device tax would hit start-up firms, which are some of the biggest drivers of medical innovation, particularly hard and could delay the next generation of medical imaging technologies for years or even decades.
“The American medical technology sector is truly an economic success story, employing millions of hardworking people and pumping billions of dollars into local and regional economies,” continued Durmis. “I urge Congress to pass this bipartisan legislation quickly and without delay.”
The Medical Imaging & Technology Alliance (MITA), a division of NEMA, is the collective voice of medical imaging equipment manufacturers, innovators, and product developers. It represents companies whose sales comprise more than 90 percent of the global market for advanced medical imaging technology. For more information, visit www.medicalimaging.org. Follow MITA on Twitter @MITAToday.
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Medical Imaging and Technology Alliance
Tracy Cullen
703.841.3282
https://www.medicalimaging.org/
Tracy Cullen
703.841.3282
https://www.medicalimaging.org/
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