Joyce To Cosponsor Legislation To Revive Innovation In Healthcare Industry

Congressman John Joyce (PA-13) today announced that he will cosponsor legislation this week to repeal the 2.3 percent medical device tax before it is reinstated for the 2020 calendar year. The tax, which was first implemented in 2013 as an effort to help fund the subsidies in the Affordable Care Act, applies to the price of medical devices large and small, including anything from MRI machines to surgical gloves. Lawmakers of both parties have voted multiple times since 2015 to temporarily halt the tax due to the problems it has caused patients and providers in the healthcare industry.

According to the Tax Foundation, the medical device tax lowered healthcare research and development spending by $34 million in 2013 alone and was responsible for the loss of approximately 21,800 jobs from 2013 to 2015. The Tax Foundation also notes that the levy on medical devices did not generate the revenue it was intended to, as the estimated sales of medical devices decreased by $188 million during the period it was in place.

The House passed similar bipartisan legislation to permanently end the tax in July of 2018, but the measure stalled in the Senate.

Joyce discussed the need to make a permanent repeal of the tax a priority in a radio interview Monday morning on WEEO in Chambersburg.

TRANSCRIPT

MICHELE JANSEN: I heard a little hint with something else within the healthcare realm that you are planning to try to fix. And this is something maybe that people aren't aware that did have a bigger impact than perhaps the public in general is aware of andndash; it's this 2.3 percent excess tax on medical devices. And the more I've looked into that, the loss of jobs and the loss of critical healthcare research that's happened because of this tax is actually quite surprising to me. It's had a bigger impact than I thought. Now it's been delayed, but we haven't repealed it and the problem still exists. So why don't you tell us a little bit about what your plan is for this?

CONGRESSMAN JOYCE: Well Michele, you can put on the doctor hat just like I can. And we both realize that this is a tax, which was initiated by the Affordable Care Act, by Obamacare. And it is just another classic example of why Obamacare has been a disaster for our healthcare system. We should be doing everything possible to lower the cost of healthcare, not imposing taxes on medical device manufacturers. And you and I both know that these taxes are going to be passed on to the consumer. Repealing this tax will allow companies to spend more money on research and development to drive innovation in healthcare. That's what I'm going to advocate for.

MICHELE JANSEN: It's important. I can't believe the number of jobs that were lost because of this tax. And with it just being delayed people might say, well it's just been delayed so what's the big deal, but I understand that it's wreaking all kinds of havoc within the industry, that they are afraid to put the money into the research and do all these things so it's real important actually.

CONGRESSMAN JOYCE: And this week I am cosponsoring legislation that will be introduced, which will permanently repeal this misguided tax and you and I both know this only increases the cost of care for patients.

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