WASHINGTON, D.C. – Stephen J. Ubl, president and CEO of the Advanced Medical Technology Association (AdvaMed), released the following statement on today’s hearing of the Senate Budget Committee on federal investment policies, and the impact of the medical device tax:
“AdvaMed would like to thank the members of the Committee for holding today’s hearing on this crucial issue. We also commend Stephen L. Ferguson, chairman of The Cook Group, for testifying on behalf of companies across the country.
“America’s medical technology industry has for decades been a world leader, providing good jobs and investing in research and development to create life-saving and life-enhancing treatments and cures. But today that leadership is increasingly challenged, and the $30 billion medical device tax is one of the biggest threats to our ability to make positive contributions to the economy and patients.
“Recent policy changes have already put a heavy burden on large sectors of our industry – including successive Medicare cuts impacting diagnostic lab tests, imaging, durable medical equipment and diabetes test strips – on top of hospital cuts which have also had an adverse impact on our industry. We support bipartisan efforts to address our nation’s economic challenges, but any solution should take into account the full impact of past and proposed policy changes on the economy and on patients.
“The device tax has already cost thousands of American jobs and will cost thousands more if it continues. It will reduce investment in research and development at a time when the opportunities for medical breakthroughs are greater than ever. There is bipartisan recognition that the American corporate tax structure is already terribly uncompetitive, but this tax will significantly discourage investment in one of the few manufacturing industries where America still leads the world. The device tax is bad public policy by any standard, and its repeal should be a priority.”
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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. For more information, visit www.advamed.org.