Over the last few years, medical device manufacturers have faced a burdensome excise tax on gross sales of medical devices. Many have said this tax has hurt innovation and hindered the advances of U.S. manufactured medical equipment. That could soon change as the House of Representatives has recently voted in favor of H.R. 160, the Protect Medical Innovation Act. Will this tax repeal help U.S. Medical device manufacturers further their lead in the global market place? Will the bill successfully make it through the Senate?
“The bill now moves to the Senate, where Senate Finance Chairman Hatch (R-UT) has introduced a similar bill, S. 149, the Medical Device Access and Innovation Protection Act. Thirty-six Senators from both sides of the aisle cosponsored the bill. This is the first time a Republican-controlled Senate has considered a repeal of the medical device tax. The House has previously passed the same bill twice, however both attempts failed to pass in the Senate. That said, H.R. 160 received considerably stronger bipartisan support than past repeal efforts.”