WASHINGTON, D.C. — Congressman Darin LaHood (IL-18) joined seven Members of Congress this week to introduce H.R. 2207, the Medical Innovation Act of 2019. This legislation will repeal the medical device tax put in place by Obamacare, which is scheduled to be reinstated in 2020 if action is not taken. Rep LaHood’s legislation already has over 220 cosponsors. After introduction, Rep. LaHood released the following statement.
“Innovation in the medical device field has reduced the overall cost of health care over time and the medical device tax threatens to stifle ongoing and future breakthrough research advancements in the medical field that can save lives,” stated Rep. LaHood. “Our bill is simple and holds large bipartisan support in Congress. Medical devices have revolutionized health care and we believe fostering an environment that supports innovation in medical research and technology will led to better care and lower costs for consumers around this country. It’s time for the medical device tax to go.”
Steve Ferguson, Chairman of the Board at Cook Group, Inc. added, “Cook Medical applauds Representative Darin LaHood for his leadership on the introduction of a bipartisan bill to repeal the medical device excise tax. Representative LaHood understands the urgency for Congress to pass legislation that would prevent the device tax from going back into effect January 1, 2020. We look forward to working with lawmakers so that we can continue to provide patients with the latest technology, support our communities like Canton, and invest in our business as healthcare evolves.”
The Medical Device Tax
The medical device tax is a 2.3% excise tax on the sale of medical technologies. This tax was enacted under the Affordable Care Act and applies to revenues, not profits. Since enacted, Congress has held strong bipartisan support for repeal of this punitive tax on innovators. Congress has acted multiple times to suspend the tax and in 2018, the House passed a bill to repeal the tax, however, the Senate failed to act. If Congress does not act this year, the medical device tax will be reinstated in 2020, stifling innovation, killing jobs, and preventing individuals from receiving healthcare solutions they need.
You can read the full bill here.
