Warren, Markey debut legislation to end ACA’s medical device tax

Document titled, Affordable Care Act
Senators Warren and Markey unveiled legislation to end medical device tax that is part of the Affordable Care Act.

Senators Elizabeth Warren and Ed Markey, both Democrats from Massachusetts, unveiled legislation that would eliminate the excise tax on medical devices that is part of the Affordable Care Act.

The 2.3% tax was added into the ACA as a funding mechanism on devices ranging from surgical tools to pacemakers to expand access to health insurance without adding to the deficit. However, opponents of the tax countered that it has put an unfair burden on small businesses and device innovation.

Dubbed the "No Taxation on Device Innovation Act," Warren and Markey said the bill would offset the cost of repeal by ending a projected $29 billion in tax breaks over the next decade for oil companies, MassLive reported. The device tax had been suspended by Congress for two years, but was reinstated on Jan. 1.


Like this story? Subscribe to FierceBiotech!

Biopharma is a fast-growing world where big ideas come along every day. Our subscribers rely on FierceBiotech as their must-read source for the latest news, analysis and data in the world of biotech and pharma R&D. Sign up today to get biotech news and updates delivered to your inbox and read on the go.

"The No Taxation on Device Innovation Act would ensure that working families aren't burdened with increased costs associated with this tax, while continuing to invest in a medical device industry that is key to the Commonwealth's culture of innovation," Markey said in a statement. 

He added that repealing that tax would be an investment in "21st Century innovation."

Warren said it was time "to repeal the medical device tax with an appropriate offset so Massachusetts device companies can continue to innovate and save lives."

There are more than 6,500 medical device companies in the U.S. that provide about 2 million jobs nationally with about 82,000 of those jobs in Massachusetts, Markey’s office said.

Suggested Articles

What the NASH field needs, says Genfit CEO Pascal Prigent, is something like the Hb1Ac test for diabetes.

Dubbed “Project Nightingale,” the efforts were announced amid concerns and federal inquiries into the data’s safekeeping and patient consent for use.

Exact Sciences received an FDA breakthrough designation for its liver cancer blood test as it finalized its $2.8 billion merger with Genomic Health.