Washington, D.C. – Today, the Medical Imaging & Technology Alliance (MITA) applauded the Problem Solvers Caucus’ proposal for repealing the medical device tax in its set of bipartisan solutions to stabilize health insurance markets and provide relief to individuals, families and small businesses.
“Repealing the device tax has deep bipartisan appeal, and I’m encouraged to see it as part of the Problem Solvers Caucus’ discussions for improving healthcare in America,” said Patrick Hope, Executive Director of MITA. “The tax has been a drain on the economy and has halted investment in research and development for advanced imaging and other life-saving technologies. Ensuring patients have access to care and protecting U.S. jobs and innovation should not be partisan issues.”
The 2.3 percent medical device excise tax was levied on the sale of medical devices that are fundamental to the practice of medicine both in diagnosing and treating disease. It has been suspended since December 31, 2015, but is set to be reinstated in 2018.
The American medical technology industry is a true economic success story, providing jobs for more than 400,000 people, paying out salaries that are 40 percent more than the national average ($58,000 vs. $42,000), and investing nearly $10 billion in research and development annually to advance patient care in the United States and around the world. The industry is fueled by innovative companies, the majority of which are small businesses, with 80 percent of companies having fewer than 50 employees.