WASHINGTON, D.C. - Stephen J. Ubl, president and CEO of the Advanced Medical Technology Association (AdvaMed), released the following statement today regarding the House Subcommittee on Oversight of the Committee on Ways and Means hearing on the medical device excise tax's implementation and administration:
"While AdvaMed supports the goals of health care reform consistent with our long-held principles, we have consistently opposed the nearly $30 billion medical device tax because of its damaging effects on economic competitiveness, jobs and the research and development needed to find tomorrow's treatments and cures.
"The medical device tax is one of the few IRS-administered provisions that goes into effect in 2013. Even apart from the destructive $30 billion economic burden of the tax, the mechanics of implementing it will be extremely challenging both for companies and for the IRS. It is vastly more complicated than a typical excise tax, and compliance by companies in our industry will be both costly and burdensome.
"We appreciate the IRS's efforts to address our concerns regarding the implementation of this onerous tax, but simply put, the complexity and difficulty in developing these regulations underscores that an excise tax is a blunt and damaging instrument being applied to highly innovative and dynamic industry.
"Our industry and the health care sector have a proven track record of creating jobs. Repealing this tax is an important first step in helping lead to economic recovery and further job growth.
"We applaud Congressman Charles W. Boustany, Jr., MD, (R-LA) and the Subcommittee in their efforts to take a close look at the impact of the new IRS regulations on the agency as well as the millions of Americans it serves.
"Moreover, we look forward to the opportunity to continue to work with the IRS to address implementation concerns."
AdvaMed member companies produce the medical devices, diagnostic products and health information systems that are transforming health care through earlier disease detection, less invasive procedures and more effective treatments. AdvaMed members range from the largest to the smallest medical technology innovators and companies.