Just announced: S.2287 would repeal the medical device tax

 Image Credit: Carol M. Highsmith, Carol M. Highsmith Archive, U.S. Library of Congress

Image Credit: Carol M. Highsmith, Carol M. Highsmith Archive, U.S. Library of Congress

The 2.3% tax on tax on medical device manufacturer revenue, enacted as part of the Patient Protection and Affordable Care Act (PPACA), suspended by Congress in 2015 and reinstated on January 1, 2018, is the target of new legislation co-sponsored by U.S. Senators Ed Markey, D-Massachusetts and Elizabeth Warren, D-Massachusetts. 

The measure to end the tax, S.2287, “A bill to repeal the medical device excise tax, and for other purposes”, was introduced on Wednesday, January 10, 2018. (As of January 15, 2018, the text of this proposed legislation had not been entered into the official record at Congress.gov.)

A recent article on MassLive.com indicated that the proposed bill would terminate an estimated $29 billion in tax breaks for oil companies during the next ten years to offset the tax revenue lost through a repeal of the device tax.

If this all sounds familiar, it’s because the bill is expected to follow along the same lines as legislation (S.844) introduced by Sen. Markey in March 2015, and summarized here.

According to AdvaMed, medical technology companies support 2 million jobs in the U.S. The trade association has advocated repeal of the tax to spur innovation and hiring.