Lafayette Journal - Rokita, Cook Biotech See Eye-to-Eye on Medical Device Tax

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The complexities of creating jobs while dealing with federal regulations were a topic of discussion Wednesday for U.S. Rep. Todd Rokita when he toured some employers and met the public in Greater Lafayette.

Rokita, R-Indianapolis, visited Cook Biotech Inc. at Purdue Research Park in West Lafayette.

"We talked about partnerships and Purdue and how a discovery out of this university has created economic growth worldwide and about 150 employees," said Mark Bleyer, president of the company whose regenerative biomedical products are used in surgical applications to repair tissue damage.

Rokita said his efforts in Washington, D.C., include attempts to repeal a medical device tax, which was discussed over lunch at Cook Biotech.

Unless it is overturned, the 2.3 percent excise tax -- a part of the Affordable Care Act that was signed into law in 2010 -- will take effect Jan. 1, 2013.

A study by a conservative think tank, the Hudson Institute, predicted that 43,000 jobs and $3.5 billion in employment compensation will be lost due to the tax.

"The medical device tax is literally making this company and the whole industry less competitive," Rokita said. "For us to become more competitive in the 21st century, putting a tax on devices that make people better is wrong-headed."

However, the study has come under criticism. For instance, a Bloomberg Government analysis said the industry study exaggerates the impact the tax would have on medical device sales. Nor did the industry analysis account for additional sales to people who obtain health insurance partly as a result of the tax.

Concerns that Cook Biotech has with the U.S. Food and Drug Administration also were discussed with Rokita.

"FDA approval has become such a slow and deliberative process," Bleyer said. "Many products are being cleared more quickly in Europe. He's aware and informed and will take appropriate steps to see if something can be done."

The freshman congressman, who is running for re-election in November, also toured Evonik Degussa Corp. Tippecanoe Laboratories and Subaru of Indiana Automotive Inc. on Wednesday.

He is unopposed in the Republican primary. Two Democrats are running for that party's nomination: Lester T. Moore, and Tara E. Nelson.

Taking a break from plant tours, Rokita also conducted a one-hour Congress on Your Corner session at Wabash Landing in West Lafayette on Wednesday.

Lafayette businessman Richard Jewell, who earlier sent Rokita a letter, followed with a face-to-face meeting.

"He said he'll be looking my letter up. I want everybody to get right back to work," said Jewell, who is involved in sales and investments. "I'm looking for people to invest in my products. And I'll use my profits to get properties."

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