Medical Association Commends House Progress on Repealing Medical Device Tax
Stephen J. Ubl, CEO of the Advanced Medical Technology Association (AdvaMed) issued a statement on the mark-up in the House Ways and Means Committee of H.R. 436, the Protect Medical Innovation Act of 2011 on May 31. The bill would repeal the 2.3% excise tax on medical devices scheduled to begin in 2013.
"AdvaMed is very pleased that Congress has taken the first step to stop the medical device tax, a tax that could cost as many as 40,000 jobs and lead to reductions in research and development that will stifle the search for tomorrow's treatments and cures," said Ubl.
"As Congress continues to move forward with this reform legislation, we urge them to consider how the life-changing technology produced by medical device manufacturers improves the quality of life of patients worldwide, " he added. "This tax must be repealed so that the medical technology industry can continue to grow and innovate."
The main purpose of the bill is to reauthorize fees from makers of drugs and devices that help speed FDA evaluation of new medical products. These so-called "user fees" could make up nearly half of the FDA's proposed $4.5 billion budget next year, according to a plan from President Barack Obama.
Passed by a vote of 387-5, the bill also helps ensure the safety of drugs imported from abroad by collecting higher fees from companies to fund FDA inspections of foreign facilities.
