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Ayotte Backs Amendment That Would Repeal Medical Device Tax

Press Release

Location: Washington, DC

U.S. Senator Kelly Ayotte (R-NH) announced today that she is cosponsoring an amendment to the Food and Drug Administration Safety and Innovation Act (S. 3187) that would repeal the $28.5 billion Medical Device Tax, currently scheduled to take effect in 2013 as part of the Patient Protection and Affordable Care Act. The amendment, introduced by Sen. Orrin Hatch (R-UT), would repeal the provision, under which medical devices ranging from surgical tools to wheelchairs would face a 2.3 percent excise tax.

Senator Ayotte, a member of the Senate Small Business Committee, has visited medical device companies throughout the state and has heard first-hand from employers about their concerns with the onerous new excise tax, which threatens New Hampshire jobs and stands to increase costs for consumers. Medicare's Chief Actuary has estimated that the tax will increase national health care costs by $18.2 billion in 2018.

Senator Ayotte is also cosponsoring stand-alone legislation that would repeal the Medical Device Tax. A recent study estimates that the tax threatens 43,000 jobs nationwide, and could result in $3.5 billion in lost wages. New Hampshire is home to about 50 medical device companies employing approximately 3,800 people.

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