Sens. Toomey, Klobuchar introduce medical device tax repeal legislation

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U.S. Senators Pat Toomey (R-PA) and Amy Klobuchar (D-MN) recently introduced legislation to repeal the medical device tax enacted as part of the Patient Protection and Affordable Care Act.

The 2.3 percent excise tax took effect in January 2013 but has been suspended twice. The most recent moratorium, which took effect on Jan. 1, 2016, is set expire at the end of the year. Toomey and Klobuchar’s Protect Medical Innovation Act would eliminate the medical device tax completely.


“The specter of the re-imposition of the punitive medical device tax threatens patients, American jobs, and medical innovation,” Toomey said. “It’s time to end this uncertainty once and for all and finally repeal the medical device tax. I urge my colleagues to join this bipartisan effort.”

The tax applies to a broad array of devices from artificial hearts to tongue depressors.

The medical device industry employs more than 519,000 across the United States. In Pennsylvania, the industry employs 18,500.

According to the Department of Commerce, 29,000 jobs were lost in the industry while the tax was in effect from 2013 to 2015.

Toomey and Klobuchar are joined by 18 cosponsors, including Sen. Bob Casey (D-PA).