Congressman Launches Website for Device Tax Repeal U.S. Rep. Erik Paulsen (R-Minn.) is stepping u

Congressman Launches Website for Device Tax Repeal

U.S. Rep. Erik Paulsen (R-Minn.) is stepping up his efforts to abolish the medical device excise tax.

One of the most outspoken critics of the 2.3 percent tax, Paulsen has launched a website to help medical device industry executives better voice their concerns to Congress about the levy and other medical technology issues. The site’s debut occurs just two months after Paulsen introduced bipartisan legislation to repeal the device tax, a move he claims will stifle growth, innovation and access to the “life-saving technologies” available in the United States. The tax is set to take effect in 2013.

“Minnesota is home to nearly 400 medical technology firms, 200 of which are located in my district,” he noted. “The House Medical Technology Caucus is an important forum for my colleagues and I to fight for these high-tech jobs and the addition of this new website further broadens our ability to inform and educate others on the issues that are critical to the medical technology industry. The website also expands our connectivity and engagement with medical technology companies, industry experts, and doctors and patients who use the products the industry creates.”

The House Medical Technology Caucus was founded in 1993 to help educate its members and staff about the various issues facing the medical technology sector. Paulsen is co-chairman of the Caucus.

Speaking at a recent LifeScience Alley event, Paulsen called the device tax a “burden” on the industry. He’s been trying to repeal the tax since the passage of healthcare reform legislation last year, but he acknowledged at the event that repealing the tax would create a $20 billion funding gap.

Two months ago, Paulsen introduced bipartisan legislation to the U.S. House of Representatives to immediately repeal the device tax. Dubbed the Protect Medical Innovation Act, the bill had 41 original cosponsors and now has 110 supporters in the House.
Companion legislation also was introduced in the U.S. Senate by Sen. Orrin Hatch (R-Utah).

Paulsen called the bill a “common-sense initiative” and urged his colleagues to find common-sense ways to provide affordable healthcare. A $20 billion levy on the device industry, he said, will only hike insurance premiums as well as the price of medical products.

The United States Chamber of Commerce agrees with Paulsen. In a March 22 letter from R. Bruce Josten, the chamber’s executive vice president for government affairs, the organization contends the tax will lead to increased healthcare costs. “In the current weak economy, this tax will undermine the industry’s ability to create and maintain well-paying jobs in the United States and hinder the development of breakthrough treatments,” Josten wrote.