On July 24, the House voted 283-132 to repeal the 2.3% medical device excise tax that was set to go into effect again in 2020. The tax was introduced with the Affordable Care Act in 2010, was implemented from 2013-2015 and has been delayed by legislative action multiple times since. Now the law will face a Senate vote to strike the tax for good.
We at InnovaHealth strongly support the repeal of the tax, which we believe places undue burden on devicemakers and harms innovation. In June 2018, a paper published in Research Policy quantified the impact of the tax during the years it was in effect. As summarized in ScienceDaily, the tax resulted in a net reduction of R&D spend by $34 million, cost the industry $188 million in revenues and led to hits to gross margins and earnings of $375 million and $68 million, respectively.