Leading MedTech Associations Support Bipartisan Senate Effort to Repeal the Device Tax


Leading MedTech Associations Support Bipartisan Senate Effort to Repeal the Device Tax


Washington, D.C. – The Medical Imaging & Technology Alliance (MITA), Advanced Medical Technology Association (AdvaMed) and the Medical Device Manufacturers Association (MDMA) today applauded the Senate introduction of bipartisan legislation to repeal the 2.3 percent medical device excise tax.  The legislation, S. 108 “Medical Device Access and Innovation Protection Act,” was sponsored by Senators Orrin Hatch (R-UT) and Amy Klobuchar (D-MN), and was introduced with 10 original cosponsors.

“We appreciate the leadership of Senators Hatch and Klobuchar in taking steps to finish what they started and push for full repeal of this job-killing tax that has negatively impacted the medical device industry,” said Patrick Hope, executive director of MITA.  “Full repeal of the medical device tax is a safeguard to ensuring that we will not lose high-paying, high-quality industry jobs and that the latest cutting-edge technologies will be available to patients who need them most.”

“The introduction of device tax repeal legislation in the first days of the new Congress tells me that this is a top priority for Members, and they understand the urgency to permanently eliminate this onerous tax now,” said Scott Whitaker, president and CEO, AdvaMed.  “The temporary suspension of the tax has led to enormous benefits, as medical technology companies have been able to reinvest funds into new R&D, infrastructure and hiring.  The bottom line is that repeal of this tax is good for patients and good for innovation.”

“MDMA applauds the leadership of Senators Orrin Hatch and Amy Klobuchar to put a permanent end to the medical device tax,” said Mark Leahey, President and CEO of MDMA.  “They recognize just how harmful this punitive policy has been for innovation and job creation, which is why the overwhelming majority of Congress agrees that it should be repealed once and for all.”


The United States is the global leader in health care innovation, and the medical technology industry directly or indirectly supports roughly 2 million jobs across the country.  In addition, medical technology companies annually invest nearly $10 billion in R&D to advance patient care in the United States and around the world.


The current suspension of the medical device tax has allowed companies to funnel more funds into R&D and hiring, building a better future for patient care and American economic growth. Permanent repeal of the device tax will provide certainty to the industry as they begin to make their long-term investment plans. However, surveys continue to show that an overwhelming majority of medical technology innovators are reluctant to make additional investments in jobs and patient care due to the temporary status of the suspension.

The Senate bill comes on the heels of the introduction last week of H.R. 184, “Protect Medical Innovation Act of 2017,” sponsored by Reps. Erik Paulsen (R-MN) and Ron Kind (D-WI), which now has 234 cosponsors. Given this positive momentum in both chambers, MITA, AdvaMed and MDMA urge Congress to take quick action in repealing the tax.