December 2017 – California is home to 1,796 medical device firms employing over 77,200 people – more firms and employees than any other state in the nation – according to the California Life Sciences Association. As a result the 2.3% excise tax to be imposed on medical device firms originally established as part of the Affordable Care Act, would have a disproportionate impact on California.
U.S. House Ways & Means Committee Chairman Kevin Brady and Reps. Erik Paulsen and Jackie Walorski, have introduced H.R. 4617 which would suspend imposition of this tax for 5-years, until December 2022.
Enacting this measure would stem the loss of innovation, investment, and jobs in medical technology research and development. Many hope that this measure will lead to a full repeal of this onerous tax on healthcare innovation and patient care.
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