Op-Ed: Keeping Our Nation Healthy and Our Economy Strong

Op-Ed

By Congressman Jim Gerlach

Published by the Pennsylvania Bio Watch on June 6, 2010

In March, President Obama signed into a law a sweeping overhaul of our nation's health care system, which is likely to give the federal government unprecedented control over health care decisions traditionally left to doctors and patients.

Estimates about the cost of the legislation started at close to $1 trillion, but have grown almost every week since the President penned the bill into law. The true cost could reach $2.4 trillion.

And some estimate that millions of Americans will still be left without health insurance, while non-partisan analysts have concluded that consumers will see double-digit percentage increases in health insurance premiums in the coming year.

The price tag is not only eye-popping, but relying on $500 billion in Medicare cuts and $569 billion in tax increases to pay for the staggering cost will have devastating effects on seniors, small business owners and families.

I am also extremely concerned about how the new health care law will affect the extremely talented and hard-working men and women in Pennsylvania's thriving life sciences and biotechnology industries.

Thanks to your tireless pursuit of lifesaving research and commitment to improving the lives of patients around the world, the biotechnology and life sciences companies have been growing and attracting investment while other sectors of our economy have faltered.

However, I am truly concerned that your continued success may be jeopardized by a new 2.3 percent tax on the gross sales of medical equipment and devices. The new tax will siphon $20 billion during the next decade away from innovation, investment and jobs.

That new tax will take a real toll right here in Pennsylvania, which has almost 600 medical device companies employing 20,000 men and women in family-sustaining jobs.

At a time when we should be meeting our steep economic challenges by nurturing small businesses, this health care law imposes a burdensome levy on an industry where more than 80 percent of the companies have 50 or fewer workers.

This new medical device tax did not become law without a fight. I joined three of my colleagues in the House in offering an amendment to strip the tax from the final language of the bill.

Regrettably, House Speaker Nancy Pelosi and her leadership team rejected our amendment, and this onerous tax remained in the bill signed into law.

However, I am not conceding defeat just yet. I am cooperating with fellow House members and have co-sponsored a separate bill, H.R. 5095, to repeal this excise tax on medical devices before it takes full effect in 2013.

I am hopeful that the Democratic Leadership will recognize the negative impact this tax will have on our nation's job creators and allow our bill to be fully and fairly debated on the floor of the House.

I understand that you need a partner in Washington who recognizes the importance of your work and how critical it is for Congress to avoid imposing policies that inhibit your work and put your jobs at risk.

That is why you have my full-fledged support and gratitude for all of your hard work to keep our nation healthy, our economy strong and our communities vibrant.

Congressman Jim Gerlach represents Pennsylvania's 6th Congressional District, which includes parts of Berks, Chester, Montgomery and Lehigh counties. He lives in Chester Springs, Chester County.

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