At AdvaMed Meeting, Clinton Says Industry ‘Has an Argument’ for Device Tax Repeal

Since stepping down as secretary of state in 2013, Hillary Clinton has been no stranger to the speakers’ circuit. She’s made the rounds, making speeches, stumping for Democratic candidates in the upcoming midterm election, and advocating for her special causes—among them: healthcare.

That’s one of the reasons the former senator from New York and first lady (of the United States as well as Arkansas) was a keynote speaker at this year’s annual conference of the Advanced Medical Technology Association (AdvaMed).

Held at McCormick Place in Chicago, Ill., this year, AdvaMed 2014: the MedTech Conference, drew more than 2,300 attendees to the Windy City to discuss issues impacting the medtech industry.
Of course, one of the topics nearest (though not dearest) to most medical device professionals’ hearts is the 2.3 medical device excise tax.

Clinton, addressing a few thousand people in a packed lunchtime ballroom, indicated she might be open to repealing what most medical device insiders see as the most onerous part of the Affordable Care Act (ACA). Republicans and some Democrats (mostly from states with heavy medtech employment) have been lobbying for repeal of the tax. The House of Representatives has passed more than a few measures that would remove the tax, though it hasn’t gotten that far in the Senate. The tax is supposed to raise $29 billion over 10 years to help pay for ACA. The White House has threatened to veto measure that would remove the tax, though some have indicated that lawmakers might be able to push repeal through if they were to find another source to replace the funding provided by tax.

Former Republican governor and senator from Indiana, Evan Bayh, also was a speaker during the AdvaMed meeting, and said he knew firsthand from closed-door meetings at the White House that President Obama wouldn’t veto a repeal if a “pay-for” could be found. Of course, Bayh added, that if the Republicans take the Senate in the next election, the road to repeal would be much easier.

In her paid appearance at AdvaMed, Clinton, who is rumored to be considering another run for the White House in 2016, made brief remarks before sitting down with AdvaMed President and CEO Steve Ubl, who thanked his guest for her years of service and congratulated her on becoming a grandmother for the first time. He was quick to ask about her position on the tax.

“We have to look and see what are the pluses and minuses,” she said. “I don’t know what the right answer about the tax is. Let’s look at what we need to do to make sure that the medical technology industry in this country remains innovative, profitable, effective, strongly partnering to lower costs and improve quality.”

But she acknowledged that the industry has “an argument to make” when it comes to repealing the tax.

More broadly, Clinton lauded the Affordable Care Act, saying that it’s helping families avoid bankruptcy and ensuring that “women are no longer charged more solely because of our gender.” At the same time, she said “there is more work to be done” to improve the law and American healthcare delivery. Over time, the law will help the U.S. economy, she said.

“All of this work will be easier if we get beyond politics,” Clinton said. “Too often our healthcare debates are clouded by ideology, rather than illuminated by data.”

She said that the Affordable Care Act—like most laws—will need to be evaluated and changed over time based on information gathered, performance indicators and ongoing stakeholder input—including the medical device tax.

“We must build on the progress we have made in improving healthcare, keep testing improvement, receive stakeholder input and conduct evidence based research,” she said. “We live in an era of big data. We need to harness it and learn from it, and that our systems can accommodate what we’re learning. I hope that the medical technology industry will be on the front lines of healthcare progress.

Clinton also praised the “many contributions” the industry has made with her family. “We’re among the many American families who have stories about why what you do is truly life-changing and life-saving,” the Illinois native told her audience, citing her husband’s quadruple coronary artery bypass in 2004 and stents implanted in 2010.

“We all share a great appreciation for the contributions medical technology has made to our lives, providing longer, healthier lives for Americans and patients around the world,” she said. “From the most basic thermometers and stethoscopes to advanced diagnostic imaging and implants, you design the kinds of interventions to save lives in ways we couldn’t imagine even 10 years ago, let alone a generation ago.”