SEARCH
Current Location:
>
> This Story

starstarstarstarempty star (4)
Log in or Register to rate this News Story
Forward Printable StoryPrint Send us your Comments

Never Miss a Story

Sign up for email alerts

 

More Industry Headlines

GE and GlaxoSmithKline team up for oncology testing Working to standardize diagnostic testing

Boosting access to primary care Increasing amount of physicians is not the answer

Federal government weighs in on antibiotic resistance Issues national strategy and calls for alternative treatments

A protein can speed up recovery after radiation and chemo Shows promise in animal experiments

Patient engagement solutions market expected to soar Will hit $13.7 billion by 2019

Big data platform designed for new value-based model Helps physicians improve outcomes while reducing costs

Hospitals saving billions on charity care ACA may save expansion state hospitals up to $4.2 billion in 2014

FDA approves GE's new PET/CT Higher sensitivity and field-of-view

Consensys joins forces with Oncology Services International A strategic alliance among ISOs

Checking in with the first installed MEVION S250 Assessing nine months of single room proton therapy

Rep. Erik Paulsen is on the medical
device industry's side

Minnesota Congressman Aims to Repeal Medical Device Tax

by Brendon Nafziger , DOTmed News Associate Editor
A Minnesota congressman introduced legislation on Wednesday hoping to overturn a $20 billion excise tax on medical device companies included in the health reform bills.

Congressman Erik Paulsen (R-MN), co-chair of the House Medical Technology Caucus, says he has 26 co-sponsors for the bill, the Defend Medical Innovation Act, according to a notice posted on his campaign website.

Story Continues Below Advertisement

Click to see a vision of improved quality of care in the OR

A mobile C-arm with low power can cause a unit to overheat, leaving your team waiting as valuable minutes tick by. Click to learn about the new Cios Alpha - delivering the most powerful generator available in a mobile C-arm



"Minnesota is one of the largest medical device alleys in the country, with tens of thousands of jobs in the sector. We can't afford lost jobs or stifled innovation," Paulsen wrote on his website in March.

Tucked into the health care bills, the 2.3 percent tax levied against medical device companies begins in 2013, and is set to raise $20 billion over the next ten years to help defray some of health reform's expected $940 billion cost.

Opponents of the tax say it will crush potentially innovative small companies and start-ups struggling to generate revenue, and that the medical device industry will already be hit by reductions in payment to hospitals and cuts to Medicare imaging reimbursements.

The current tax is half as steep as the one called for by earlier versions of the health bills, which would have raised $40 billion and started in 2011. It is also deductible from corporate taxes.

This is an election year for Paulsen, a freshman congressman from Minnesota's 3rd district, representing the western suburbs of the Twin Cities area, who claims to have raised about $1.5 million so far for his campaign, an order of magnitude more than his main rival, Jim Meffert of the Democratic-Farmer-Labor party.

Minnesota is a medical device manufacturing hub, and home to such industry giants as Medtronic and St. Jude. According to the Center for Responsive Politics, through PACs, employees or shareholders at Medtronic, St. Jude and Boston Scientific have all made small donations to Paulsen's campaign.

According to government figures, the medical device industry employs more than 350,000 people across the United States. In 2006, there were 8,500 device firms in the U.S.; production exceeded $90 billion.

Related:


Interested in Medical Industry News? Subscribe to DOTmed's weekly news email and always be informed. Click here, it takes just 30 seconds.
Access and use of this site is subject to the terms and conditions of our LEGAL NOTICE & PRIVACY NOTICE
Property of and Proprietary to DOTmed.com, Inc. Copyright ©2001-2014 DOTmed.com, Inc.
ALL RIGHTS RESERVED