MITA Urges House Members of the 115th Congress to Support Repeal of the Medical Device Tax in 2017

12.15.16

Dear House member:

As the leading trade association representing the manufacturers of medical imaging equipment and radiopharmaceuticals, the Medical Imaging & Technology Alliance (MITA), urges you to support legislation in the 115th Congress to repeal the medical device tax.

On January 1, 2013, the IRS imposed a new $29 billion excise tax on companies producing the innovative medical devices that are crucial to effective and efficient health care. In a competitive global industry, this new tax created an enormous obstacle for an industry that supports hundreds of thousands of American jobs.

Unfortunately, this new tax also reduced the resources that the industry used to fund research and development and invest in manufacturing. Less investment in R&D slowed the pace of innovation and postponed patient access to the next generation of care.

Last year, a bipartisan coalition in the House came together to pass legislation fully repealing the device tax in the House, paving the way for the Senate to easily approve a two-year suspension of the tax. During the first year of the suspension, medical imaging manufacturers initiated plans to redirect funds earmarked for the tax towards reinvestment in R&D and increased hiring. In fact, a recent survey revealed that 71% of MITA companies are likely to hire more U.S.-based employees and 79% are more likely to accelerate the completion of one or more products currently under development due to suspension of the tax.

If the tax is allowed to resume in 2018, it will disrupt the industry’s state of constant innovation which brings exciting new advances each year in reducing radiation dose and improving imaging clarity. These recent developments have given physicians new tools to diagnose and treat diseases at earlier stages, improving patient care and reducing downstream costs to the health care system.

Rep. Erik Paulsen and Rep. Ron Kind plan to introduce a bipartisan bill on the first day of the 115th Congress to repeal the medical device tax. MITA urges all Members of Congress to join a growing bipartisan coalition to become an original cosponsor of this legislation.

Please contact Matt Gallivan (matt.gallivan@mail.house.gov) in Rep. Paulsen’s office or Liz Stower (elizabeth.stower@mail.house.gov) in Rep. Kind’s office to be added as an original cosponsor.

 

Sincerely,

Nelson Mendes

Chairman, MITA Board of Directors

CEO, Ziehm Imaging, Inc.