Undoing Obamacare’s Harm on Medical Innovation
Healthcare is a top priority on the minds of Americans which makes it contingent on policymakers on both sides of the aisle to work together. To live longer, healthier, and more productively, this starts with an immediate repeal of the medical device tax.
The 21st Century Cures Act, signed into law in late 2016, when put into fruition will advance medical innovation for the benefit of patients coping with disease.
As a result, The FDA will continue to improve its performance and fulfill its mission of protecting the public health and promoting innovation.
The medical device tax of 2.3 percent excise tax enacted as part of the Affordable Care Act (ACA) – placed a heavy burden on the medical technology industry, slowing the pace of medical innovation and costing thousands of U.S. jobs.
Rather than advancing patient access to care, the tax forced companies to delay hiring as a means to pay the tax and stalled the development of next generation life-changing medical technologies.
Fortunately, the tax was suspended in December 2015 for two years and since then many companies have not only reported an increase in hiring but also have revitalized their research and development pipelines, and reinstated delayed projects.
The suspension of the medical device tax has enabled OrthoPediatrics, for example, a small Indiana-based company that develops implantable orthopedic devices for children, to resume hiring and increase the development of new products for the nation’s youth.
If Congress fails to provide a permanent fix, they are severely limiting the ability of manufacturers large and small to invest in jobs to develop the next wave of medical technologies and bring them to market. Patients that depend on these technologies for the diagnosis, monitoring and treatment of life-threatening diseases are the ones that suffer.
The medical device tax also jeopardizes good high-tech manufacturing jobs here in the United States. For Americans to receive smart policies and better investment in medical technology, Congress must abolish this tax.
Featured Image via “Pixabay.”