House Committee Votes To Repeal Medical Device Tax

There they go again.

The GOP’s latest attempt to kill the 2.3 percent medical device tax took a big leap forward on June 2, as the U.S. House of Representatives Ways and Means Committee voted overwhelmingly to repeal the unpopular legislation. The Republican-run committee passed the bill 25-14, mostly along party lines, with Rep. Ron Kind (D-Wis.) as the only democrat to support the proposal. If the decision passes in both the House and the U.S. Senate, the repeal would represent a $24.4 billion loss in funding for the Affordable Care Act (ACA) over the next 10 years.

Since lawmakers have not provided alternative funding sources to replace the tax, Democrats like Rep. Sander Levin (D-Mich.) see the repeal as a blatant attempt to dismantle the ACA one piece at a time. Many democrats claim the medical device industry willingly agreed to contribute to the cost of the ACA, and that the industry has seen an increase in revenue despite the tax.

Republicans disagree, contending the tax, which took effect in 2013, represents a major economic blow to high-technology jobs in the United States and threatens the nation’s innovative edge in the world. “It’s like putting sandbags on the wings of the Wright brothers as they try to figure out how to fly an airplane,” Rep. Patrick Meehan (R-Pa.), told U.S. News & World Report.

Committee Chairman Rep. Paul Ryan (R-Wis.) called the bill “common sense.”

“It’s an iron law of economics that when you tax something, you get less of it,” Ryan told The Washington Times. “So we really got our wires crossed here. We want more medical devices. What we want less of is this bureaucratic meddling.”

Stephen Ubl, president and CEO of the Advanced Medical Technology Association (AdvaMed), naturally, commended the House committee on its vote.

“American patients are depending on the next generation of breakthrough technologies to become a reality. With an aging population and chronic disease growing at ever-faster rates, now is the time for more – not less – resources to advance cures and treatments to help people live healthier, more independent lives,” he said in a formal statement. “There is strong bipartisan support in both chambers of Congress to repeal this anti-patient, anti-innovation tax. We look forward to the full House taking up repeal legislation in the near future, and we urge the Senate to follow suit.”

With Republicans controlling both branches of Congress, the chance for repeal is significantly greater than it has been in the last two years. President Barak Obama, however, has promised to veto such legislation if it ever reaches his desk.

In a more bipartisan 31-8 vote, the House Ways and Means Committee also voted to repeal the Independent Payment Advisory Board (IPAB), a panel created by the ACA to monitor and potentially reduce the cost of Medicare.

Earlier this month, 500 organizations, including the American Medical Association, U.S. Chamber of Commerce, and the Healthcare Leadership Council, drafted a statement urging Congress to repeal IPAB, citing concerns that it would diminish seniors’ access to care.

Both bills are scheduled to go to the House floor for a full vote in mid-June. There currently is no timetable for a Senate vote.