Senator Orrin G. Hatch (R-Utah), Chairman the Senate Finance , introduced a bipartisan bill to repeal the 2.3% medical device enacted as the Act. Five Democrats and four Republicans signed as co-authors the bill.
The was introduced in January 2013. Backers estimated it would raise $20 billion by 2020, to be used to offset some of the costs of the Act. Critics have argued that the discourages medical innovation and increases costs to patients.
Democratic senators joining Hatch on the repeal measure, S. 149, the Medical Device Access and Innovation Protection Act, include Al Franken and Amy Klobuchar Minnesota, Joe Donnelly Indiana, Bob Casey Pennsylvania and Jeanne Shaheen New Hampshire. One more Democrat would give the bill the 60 supporters needed to overturn a presidential veto.
A similar bill has been introduced in the House by Erik Paulsen (R-Minnesota), a member the Ways and Means . It has gained support more than 260 co-sponsors, including a number Democrats.
Neither measure specifies how the lost revenues would be replaced.
The excise affects manufacturers medical devices ranging from artificial hips and knees to cardiac defibrillators and MRI scanners. It taxes gross receipts over $5 million year.
When introducing his bill Hatch said, “Every dollar medical device manufacturers spend this onerous is a dollar taken away from American innovation, job growth and the ability to provide groundbreaking medical technologies to patients in need.”
More than 1,000 medical device manufacturers and industry groups signed a letter support for S. 149, saying that if the is not repealed it “will continue to force affected companies to cut manufacturing operations, research and development, and employment levels,” and will “adversely impact patient access to new and innovative medical technologies.”