WASHINGTON, DC – Today, Rep. Dean Phillips (MN-03) announced that he is an original co-sponsor of the bipartisan Protect Medical Innovation Act, which was introduced in the House today. The bill would permanently repeal the medical device tax. Minnesota’s Third District has more medical technology companies than any other Congressional District in Minnesota.
“The medical device tax has overstayed its welcome, and I am pleased to join my colleagues from both sides of the aisle to push for its permanent repeal,” said Phillips. “Too many jobs have been lost and too much innovation has been stifled due to this tax which disproportionately impacts our community. Our government should be supporting progress and new technology, especially in health care. The medical device tax is counterproductive to that mission, and that’s why it has to go.”
The medical device tax is a 2.3% excise tax on the sale of most medical technologies that was enacted as part of the Affordable Care Act. In January, Congress suspended the tax until December 31, 2019, but it has yet to be fully repealed. The US Department of Commerce estimates that nearly 29,000 medical technology industry jobs were lost while the tax was in effect.