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Johanns, Bipartisan Group Introduce Bill to Repeal $30 Billion Medical Device Tax


Location: Washington, DC

U.S. Sen. Mike Johanns (R-Neb.) today joined Senate Finance Committee Ranking Member Orrin Hatch (R-Utah) and a bipartisan group of Senators in introducing legislation to repeal the medical device tax included in President Obama's health care law.

"This tax doesn't just cost the companies that manufacture these products, it drives up health care costs for every American," Johanns said. "We need to repeal this misguided policy so the makers of everything from thermometers to microchips can develop the new and innovative technology that helps save lives."

Under the health care law, manufacturers of medical devices must pay a 2.3 percent excise tax -- an additional $30 billion -- that will be added to the cost of care for Americans, hinder industry innovation and weigh down job creation and the overall delivery of quality patient care. The tax, which took effect in January, is expected to put 43,000 American jobs at risk, according to the Advanced Medical Technology Association (AdvaMed).

In addition to Johanns and Hatch, the tax repeal legislation is sponsored by Senators Lamar Alexander(R-Tenn.), Kelly Ayotte (R-N.H.), John Barrasso (R-Wyo.), Roy Blunt (R-Mo.), Richard Burr (R-N.C.), Bob Casey (D-Penn.), Saxby Chambliss (R-Ga.), Dan Coats (R-Ind.), Tom Coburn (R-Okla.), Susan Collins (R-Maine), John Cornyn (R-Texas), Mike Crapo (R-Idaho), Joe Donnelly (D-Ind.), Al Franken (D-Minn.), Jim Inhofe (R-Okla.), Johnny Isakson (R-Ga.), Amy Klobuchar (D-Minn.), Jerry Moran (R-Kan.), Rob Portman (R-Ohio), Jim Risch (R-Idaho), Pat Roberts (R-Kan.), Marco Rubio (R-Fla.), John Thune (R-S.D.), Pat Toomey (R-Penn.) and Roger Wicker (R-Miss.).

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