The Petition

Tell Congress: Repeal the 2.3% innovation-crushing medical device tax against American industry!

When 400 American medical device CEOs sent a July 2011 letter (below) to both branches of Congress, only 175 State Representatives favored repeal. Now 229 favor repeal ... enough to pass the House ... but the Senate needs to hear from you!

Remember, it's an election year. Your signature counts! You CAN make a difference.
Please sign the petition now.

July 18, 2011

  • The Honorable John Boehner Speaker of the House
    U.S. House of Representatives
  • The Honorable Eric Cantor Majority Leader
    U.S. House of Representatives
  • The Honorable Kevin McCarthy Majority Whip
    U.S. House of Representatives
  • The Honorable Nancy Pelosi Minority Leader
    U.S. House of Representatives
  • The Honorable Steny Hoyer Minority Whip
    U.S. House of Representatives
  • The Honorable James Clyburn Assistant Minority Leader
    U.S. House of Representatives

Dear Speaker Boehner, Majority Leader Cantor, Majority Whip McCarthy, Minority Leader Pelosi, Minority Whip Hoyer, and Assistant Minority Leader Clyburn:

As Congress explores policies to grow the economy, encourage job creation and innovation, we respectfully request that you add the repeal of the recently enacted medical device excise tax to your list of priorities of legislation that should be acted on this year. We believe that implementation of this $20 billion excise tax will adversely impact patient care and innovation, and will substantially increase the costs of health care. On behalf of the more than 400 undersigned organizations, companies, and venture capital firms representing hundreds of thousands medical technology jobs, we ask that you bring the device repeal legislation, which has the support of more than 175 Members [editor's note: 229 as of April 16, 2012], to a vote this year.

As you know, the medical device industry is a unique American success story – both for patients and our economy. The United States is the world leader in manufacturing life-saving and life-enhancing treatments, and the industry is an important engine for economic growth. The industry employs more than 400,000 workers nationwide; generates approximately $25 billion in payroll; pays out salaries that are 40 percent more than the national average ($58,000 vs. $42,000); and invests nearly $10 billion in research and development (R&D) annually. The industry is fueled by innovative companies, the majority of which are small businesses with 80 percent of companies having less than 50 employees and 98 percent with less than 500 employees.

Unfortunately, beginning in 2013, the health care law will impose a new $20 billion excise tax on medical technology companies that will stifle innovation and U.S. competitiveness. Despite the 2013 implementation date, the tax is already having an adverse impact on R&D investment and job creation, jeopardizing the U.S. global leadership position in medical device innovation. If this tax is not repealed, it will continue to force affected companies to consider cutting manufacturing operations, research and development, and employment levels to recoup the lost earnings due to the tax. It will also adversely impact patient access to new and innovative medical technologies.

In short, this tax on innovation should be repealed for the following three important reasons:

• The tax will stifle innovation and cost thousands of high-paying jobs. It will increase the effective tax rate for many medical technology companies, thereby reducing financial resources that should be used for R&D, clinical trials and investments in manufacturing. The impact will be especially hard on smaller companies whose innovations are not immediately profitable.

• The tax will increase health care costs as confirmed by a report issued in April 2010 by the Office of the Actuary at the Centers for Medicare and Medicaid Services (CMS). In some cases, the 2.3% tax will be passed on to consumers, leading to higher health care costs.

• The tax will not be offset by increased demand for medical devices. In fact, it is important to note that there is no evidence suggesting a device industry “windfall” from healthcare reform. Unlike other industries that may benefit from expanded coverage, the majority of device-intensive medical procedures are performed on patients that are older and already have private insurance or Medicare coverage. Where states have dramatically extended health coverage, such as in Massachusetts where they added 400,000 new covered lives, there is no evidence of a device “windfall.”

At a time when the federal government is working to promote investment in U.S. industries of the future, it is inconsistent that a tax of this magnitude would be considered on the medical device industry. We must do all we can to encourage and promote research, development, investment and innovation. Instead, increased taxes, such as this one on the medical device industry, coupled with the increased regulatory uncertainty the industry also faces, will lead to further job losses, hinder the development of breakthrough treatments and delay patient access to medical technology.

We respectfully request timely action on legislation to repeal this $20 billion tax. [Editor's note: The tax is now estimated at $30.5 billion.]

3C Spine, Inc. 3M Healthcare
Abaxis Abbey Moor Medical
Abiomed, Inc. Acacia Research Corporation
AccessClosure Accuitive Medical Ventures
Acumen Healthcare Solutions Adhezion Biomedical
Adroit Medical Advanced BioHealing
Advanced Bionics AdvaMed
Advanced Technology Ventures AdvanDx
Aerocrine, Inc. Aesculap, Inc.
Aethlon Medical, Inc. Align Technology, Inc.
Allegro Diagnostics Allergan
Allvivo Vascular, Inc. ALPCO Diagnostics
Alphatec Spine, Inc Alta Partners
Ambu Amedica
American Medical Systems Analogic Corp
Andersen Products Angel Medical Systems
AngioDynamics Anulex Technologies, Inc.
Apnex Medical, Inc. AqueSys, Inc.
ARC Medical, Inc. Ardiem Medical, Inc.
Argenta Advisors ARIBEX, Inc.
Arizona BioIndustry Association ARKRAY
Asante Solutions, Inc. Aspen Medical Products
AtCor Medical Holdings, Ltd. ATEK Medical
Ativa Medical AtriCure, Inc.
Atrium Medical Corporation Aurident, Inc.
Auxogyn, Inc. Avinger
Axiom Medical, Inc. AxoGen, Inc.
B. Braun Medical, Inc. BAROnova, Inc.
BaroSense, Inc BÂRRX Medical, Inc.
Baxano BayBio
BEACON BeneChill, Inc.
Berman Medical BioBDx
BioCardia, Inc. BioCare Systems, Inc.
BIOCOM Bioconnect Systems, Inc.
BioDerm, Inc. BioFlorida
BIOforward BioMedical Life Systems
BioMedix Biomerix Corporation
Biomet, Inc. BioOhio
Bioscale BioSculpture Technology, Inc.
Biotest Laboratories, Inc. Boston Healthcare Associates, Inc.
Boston Scientific Corporation Breathe Technologies
BTE Technologies, Inc. Busse Hospital Disposables
C.R. Bard, Inc. Cabochon Aesthetics, Inc.
Caldera Medical, Inc. Calibra Medical, Inc.
California Healthcare Institute (CHI) Calypso Medical
Canaan Partners Cannuflow Inc.
Carbylan Biosurgery, Inc. Cardia Access
Cardiac Dimensions, Inc. Cardiac Science
Cardinal Detecto Cardinal Health
CardiacAssist, Inc. CardioMEMS, Inc.
Cardiovascular Systems, Inc. CareFusion Corporation
Carticept Medical, Inc. Catheter Connections
CBSA CEA Technologies, Inc.
Celleration Cellestis Inc
Checkpoint Surgical CHF Solutions, Inc.
Christcot Medical Company Clarity Medical Systems, Inc
Coherex Medical COMPASS International Innovations
Conceptus ConvaTec Inc.
Cook Medical Corinthian Ophthalmic, Inc.
Covalent Medical, Inc. Covidien
Critical Diagnostics Crux Biomedical
Curexo Technology Corporation Curo Medical, Inc.
CVRx Inc. Cyberonics
Cynosure Cytori Therapeutics, Inc.
CytoSorbents Corporation D&D Medical, Inc.
DataPhysics Research, Inc. DaVinci Biomedical Research
De Novo Ventures Delcath Systems, Inc.
Dental Trade Alliance (DTA) Design Mentor
DFine, Inc. Digirad
Direct Flow Medical Disposable Instrument Co., Inc.
Domain Associates, L.L.C. Drexler Medical
Dynatronics Echo Therapeutics
EKOS Corporation Ellman International
Emergent Medical Partners Emerson Consultants, Inc.
Endo Pharmaceuticals Endo-Therapeutics, Inc.
EndoChoice, Inc. EndoGastric Solutions
eNeura Therapeutics Entellus Medical
EnteroMedics, Inc. Erchonia Corp.
Essex Woodlands eVent Medical
Exactech Experien Group
ExploraMed Development FAST Diagnostics
FemCap Inc. Ferris Mfg. Corp.
Flexuspine, Inc. Florida Medical Mfg Consortium
ForSight Labs Fresenius Medical Care NA
Fujirebio Diagnostics, Inc. Galil Medical
Galt Medical Gambro
Gen-Probe Incorporated GENICON
GI Dynamics, Inc. Globus Medica
GluMetrics Greatbatch Medical
HALT Medical, Inc. Healthpoint Biotherapeutics
HealthpointCapital HeartWare International, Inc.
HEMERUS Hill-Rom
Hotspur Technologies, Inc. Hull Associates
ICAP Patent Brokerage ICONACY Orthopedic Implants
IKARIA IlluminOss Medical, Inc.
ImpediMed Impliant, Inc.
ImThera Medical, Inc. Indiana Medical Device Mfrs Council
InfraScan, Inc. Innovative Surgical Designs, Inc.
Innovent Medical Solutions, Ltd. Inogen
inSite Medical Technologies Instratek, Inc.
IntraPace IntriMed Technologies
Intuity Medical, Inc iRhythm Technologies, Inc.
Ivantis, Inc. J.H. Garver Consulting
Jack Saladow & Associates Kalypto Medical
KCI Kensey Nash Corporation
Kimberly-Clark Health Care KRONUS, Inc.
LAAx, Inc. LFI Medical
Life Core Technologies Lifecore Biomedical
LifeScience Alley LifeWave
Linde Healthcare LogicMark
Lutonix, Inc. MacuCLEAR, Inc.
Mardil Medical, Inc. Masimo
MA Med Device Industry Council Medafor, Inc.
MedDx Capital Advisors Medical Device Consultants, Inc.
MDMA Medical Imaging & Technology Alliance
Medicis Technologies Corporation Mediclever
MediStim USA, Inc. Medrad
Medrobiotics Corporation MedTech
Mercury Medical Merit Medical Systems, Inc.
MichBio MicroTransponder Inc.
Midmark Corporation Minnetronix
Mirador Biomedical Miramar Labs
Moog Medical Devices Morgenthaler Ventures
Morris Innovative Moximed
MPM Capital MPR Product Development
MyoScience National Assn of Manufacturers (NAM)
Nat’l Federation of Independent Bus. Naviscan, Inc.
NDH Medical Neocure
Nelson Laboratories, Inc. Neomend, Inc.
NeoTract, Inc. Neovista Inc.
Neuro Resource Group, Inc. Neuronetics, Inc.
NeuroPace NeuroVista Corportation
NeuroWave Systems Inc. Neuvomedica Ltd.
New Enterprise Associates New Leaf Venture Partners
NinePoint Medical Non-Invasive Medical Systems
Norris Capital, Inc. North Carolina Biosciences Organization
Nova Biomedical Novasys Medical
NuOrtho Surgical, Inc. Nuvasive
Nuvimedix NVCA/MedIC
NxStage Medical, Inc. O.E. Meyer Co.
OMNIlife science, Inc. ONSET Ventures
OptiMedica OptiScan Biomedical, Inc.
Orchid Orthopedic Solutions Ortho Kinematics
Orthodontic Manufacturers Assn OrthoWorx
OsteoMed Paracor Medical, Inc.
Pathfinder Therapeutics, Inc. Pathway Medical Technologies
Patient Pocket Pennsylvania Bio
Penumbra, Inc. PercSys
Percutaneous Systems Phillips Consulting Group
PhotoMed Technologies, Inc. Pivot Medical Inc.
Plasma Technologies, Inc. Plexus Corp.
Portaero Preceptis
Prism VentureWorks Prizm Medical, Inc.
Prospect Venture Partners Proteus Bimedical, Inc.
PuriCore QualPro Consulting
Quasar Bio-Tech Inc. Regulatory & Quality Solutions
Reichert Technologies Reimbursement Strategies
Relievant Medsystems, Inc. Respicardia, Inc.
Respiratory Research, Inc. ReVent Medical, Inc.
ReVision Optics Rhythmlink International
RITM America RODO Medical, Inc.
ROX Medical SandBox Medical
SDRS Sensable
Sequent Medical Inc. SightLine Partners
SIGNUS Medical Silere Medical Technology, Inc
Sirtex Medical Inc Skyline Ventures
Small Bone Innovations, Inc. Smith and Nephew, Inc.
Smiths Medical Soteira, Inc.
Sotera Wireless Southeastern Medical Device Association
Spherlngenics, Inc. Spinal Kinetics
SpinalMotion, Inc. Spine Wave, Inc.
SpineAlign Medical, Inc. Spineology Inc.
Spiracur Inc. Spiration, Inc.
Split Rock Partners St. Jude Medical
STD Med, Inc. Stout Medical Group
Strada Consulting Streamline, Inc.
Stryker Sunshine Heart
SunShine Medical superDimension, Ltd.
SurgeOptix SuturePro Technologies
Svelte Medical Systems, Inc. Swan Valley Medical, Incorporated
Synapse Biomedical, Inc. Synecor
Synergy Life Science Partners Sysdyne Corporation
Tactile Systems Technology, Inc. Tarsus Medical Inc.
TearScience, Inc. Tenaxis Medical, Inc.
The Eclipse Group The Foundry
The Innovation Factory The Vertical Group
TheraTogs, Inc. ThermoGenesis Corp.
Therox THI, Inc.
Thoratec Corporation Three Arch Partners
ThreeWire TIDI Products
TranS1, Inc. Transcend Medical
TransEnterix, Inc. Transonic Systems, Inc.
TriVascular, Inc. Twin Star Medical
TYRX, Inc. U.S. Chamber of Commerce
UltiMed, Inc. Unilife medical solutions
Urologix, Inc Uromedica, Inc.
Uroplasty, Inc. Urovalve, Inc.
USGI Medical, Inc. USHIFU
Utah Technology Council Valeritas, Inc.
Valley Ventures ValveXchange, Inc.
Vascular Solutions, Inc. Vector Resources
Velico Medical, Inc. Velomedix, Inc.
Ventus Medical, Inc. Veracyte
Versant Ventures Vibrynt, Inc.
VIDA Diagnostics Virginia Biotechnology Association
VirtualScopics, Inc. Viscogliosi Bros.
VisionCare Ophthalmic Tech Vital Therapies, Inc.
Vital/Med Systems Corporation Vitalcor, Inc.
Volcano Corp. WA Biotech & Biomed Association
Waters Corporation Wescor
White Pine Medical, Inc. Wilson Sonsini Goodrich & Rosati
Zilico Limited Zimmer, Inc.
ZOLL Zynex Medical, Inc.
No 2.3%. Join the fight. Sign the petition today!
 

Special thanks to these vocal medical device tax opponents. They made this effort possible.