"That was also 40 percent of the total revenues so it was actually a pretty good response rate," said Nexon.

He said the respondents were split almost in half between large and small companies.


The medical device excise tax was included in the Affordable Care Act as a way to raise roughly $30 billion over 10 years to offset the cost of reform. One of the reasons medical device companies were singled out to be hit with the tax was because they would likely benefit through higher revenues as more Americans gain health coverage under the law.

Despite aggressive lobbying by medical device makers, industry partners and even some politicians, the 2.3 percent excise tax went into effect on Jan. 1, 2013. It applies to the sale of medical devices by manufacturers and importers. From the get-go, the medical device industry said it will force companies to lay off workers and dry up important R&D funding.

But critics say the case for repealing the tax is not strong enough. The Center on Budget and Policy Priorities, a non-profit think tank, published a piece that said arguments against the excise tax don't withstand scrutiny. It cited Martin Rothenberg, head of a device firm in New York, who said the tax will add little to the price of a new device that his firm is developing: "If our new device proves effective and we market it effectively, this small increase in cost will have zero effect on sales. It would surely not lead us to lay off employees or shift to overseas production."

Critics also suggest that politicians in Congress — particularly Democrats — who have supported repeal efforts, have only done so to appeal to their constituents. Democratic Senator Al Franken of Minnesota — a state that is home to more than 40 device makers — is one example.

Rep. Charlie Dent, a Pennsylvania Republican, is the latest member of Congress to take measures aimed at the tax. He is introducing legislation to repeal it as part of a larger deal aimed at unemployment benefits. Dent has offered to extend unemployment benefits in exchange for a repeal, among other things.

However, one of the main issues with repealing the tax would lie in trying to find replacement funding for the $30 billion taken out.

Despite the obstacles, supporters are forging ahead.

"We are cautiously optimistic," said Nexon.

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