"We commend you and your colleagues for provisions included in your bills that will help states and territories. Many of the provisions will allow states and territories to achieve long-term savings and help those who currently go without health coverage," the letter stated.

"State budgets are breaking under the rising costs of health care, and the costs of maintaining the status quo have become too great to ignore," Baucus commented in a press release. "I'm encouraged by these governors' leadership in supporting health care reform that reduces health care costs over the long-term for government, for businesses and for all Americans."


Industry leaders also had praise for the bill's proposals. BIO President and CEO Jim Greenwood has commended Senator Robert Menendez (D-NJ) on an amendment to the bill creating a tax credit that would encourage investments in new breakthrough medical therapies to prevent, diagnose, and treat acute and chronic diseases. Small biotechnology companies with 250 employees or less would be reimbursed for a portion of their therapeutic development activities, including hiring scientists and conducting clinical studies. Greenwood also praised Chairman Baucus and amendment co-sponsors Senators Maria Cantwell (D-WA) and John Kerry (D-MA), for supporting cutting-edge biomedical research. "Their leadership will help countless patients access advanced medical treatments," Greenwood said in a press release. "The future of the American economy depends on critical investments in one of America's core strengths: the development of advanced medical treatments and breakthroughs."

Device Tax

However, the legislation's tax on medical device manufacturers continues to draw strong congressional criticism. Legislators have sent letters to Baucus and House leaders urging reconsideration of the annual tax on medical device manufacturers. Senators Barbara Boxer's and Dianne Feinstein's (both D-CA) letter to Baucus on Friday discussed the fact that California has more medical technology workers than any other state. The proposed excise tax will have "disproportionate impact on California's fragile economy," the senators said, adding that medical device companies have told them that the tax will force cutting back research and development and lead to job loss.

Twenty members of the House have sent Speaker Nancy Pelosi (D-CA) and House Majority Leader Steny Hoyer (D-MD) a letter with similar sentiments. "We agree that health care reform is needed and should be paid for, but this proposal threatens to crush the very industry that could save billions of dollars in the healthcare system. This $40 billion dollar tax would hamper investment in R&D, slow innovation, and cut jobs at a time when unemployment rates are already too high. We cannot afford these losses."

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