Medical Device Industry Responds to Senate Version of Healthcare Reform Proposal

The $849 billion healthcare reform proposal unveiled by Senate Majority Leader Harry Reid on Wednesday includes a $19 billion medical device tax over 10 years, about $20 billion less than the original Senate Finance Committee version and approximately the same amount as the House version.

Medical Product Outsourcing reached out to industry organizations and firms for reactions.

Advanced Medical Technology Association

“AdvaMed appreciates the Senate’s decision to reduce the proposed tax on medical devices consistent with the House bill. We will work collaboratively with the Senate and the House on the details of the policy,” the Washington, D.C.-based medical device advocacy organization said in a statement.

“There are many significant provisions in the Senate bill that will advance quality patient care and we commend the Senate for its efforts. We support the comparative effectiveness research provisions to guide clinical decision-making as well as delivery system reforms that can improve the quality of patient care and increase efficiencies. We also support appropriate disclosure of payments to physicians with a uniform federal standard to ensure transparency in industry-physician relationships.”

Medtronic Inc.

“Both the House and Senate have now proposed medical device taxes or fees totaling approximately $20 billion over 10 years – half of the original Senate proposal of $40 billion. A tax on medical device manufacturers could have untold adverse implications for innovation and jobs, and yet we accept the notion of shared responsibility in meeting the challenge of expanding access to affordable, quality health insurance for all Americans,” said Bill Hawkins, chairman and CEO of Minneapolis, Minn.-based medical device giant Medtronic Inc.

“We are encouraged by the progress in this area reflected in the new Senate proposal as well as the House healthcare reform bill passed earlier this month. The Senate and House proposals have substantive differences in how and when these taxes or fees would be applied to the industry, and we look forward to continued constructive work with members of both houses and the Obama administration to craft a final proposal that meets the important tests of transparency, predictability, simplicity in administration and fundamental fairness.”

Biomet

“We encourage Congress to work on a permanent solution to the current system for physician reimbursement to ensure an ongoing supply of surgeons who treat musculoskeletal disorders,” said Bill Kolter, corporate vice president of Biomet, based in Warsaw, Inc.

Visit http://democrats.senate.gov/reform/patient-protection-affordable-care-act.pdf to read the complete Senate healthcare reform version.

Please e-mail [email protected] if your medical device-related firm or organization would like to contribute a reaction.