Meehan Applauds House Repeal of Job-Killing Health Care Provisions

Press Release

Today the U.S. House of Representatives repealed the job-killing medical device tax that was included in the 2010 health care law. Following his vote, Rep. Patrick Meehan (PA-07), a cosponsor of the bipartisan legislation, issued the following statement about his strong support for H.R. 436, the Health Care Cost Reductions Act:

"There's a reason Democrats and Republicans across the country oppose this $28.5 billion tax: it's a job-killer that will increase health care costs, not lower them," Meehan said. "Pennsylvania is home to 600 medical device companies that employ more than 20,000 people across the commonwealth, with a huge concentration of them in our region. With this repeal, we are protecting thousands of jobs right here at home."

This legislation will repeal a provision in the 2010 health care law that would impose a 2.3 percent tax on the sale of medical devices. According to an industry study, over 91% of medical device manufacturers are small or mid-sized businesses.

Medical device companies have made it clear that this tax would mean significant layoffs and a decrease in research and development investments. The tax would be especially damaging to innovative start-up companies, since it is based on sales rather than profits.

H.R. 436 also repealed the ban on use health savings accounts for over-the-counter medications, also contained in the health care law.

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