More than 50 medical device executives from around the world will hit Capitol Hill on Thursday in an effort to persuade Congress to repeal the impending medical device tax. The effort unites members of AdvaMed, the Medical Imaging and Technology Alliance, and the Medical Device Manufacturers Association.
Among the companies sending execs to Washington tomorrow are C.R. Bard ($BCR), Cook Medical, Hologic ($HOLX) and Toshiba, according to AdvaMed.
AdvaMed's J.C. Scott said the execs plan to "blanket the hill," meeting with lawmakers from all chambers and parties in hopes of motivating a lame-duck Congress to strike the tax from the books before it takes effect Jan. 1. Scott said the execs will argue that the tax unfairly targets an industry that provides high-paying jobs in the U.S., and AdvaMed says they have an armload of data to support their case.
Today, the group released analysis from Ernst & Young finding that the 2.3% charge will add $2.5 billion onto the industry's estimated total federal taxes in 2013, a 29% increase. The heavier tax burden would have "a devastating effect on jobs," AdvaMed Senior Executive Vice President David Nexon said, and cripple the industry's ability to compete in the global marketplace.
The Ernst & Young report is just the latest in a slew of whitepapers and PR initiatives AdvaMed has deployed to convince elected officials to nix the tax, and Scott said the group plans to launch an advertising campaign in the DC area in addition to hosting more events and releasing further studies.
- read the Ernst & Young report (PDF)
Special Report: 5 Things You Need To Know About the Medical Device Tax