GOP senators look to eliminate medical device tax

Senate Republicans unveiled a bill Thursday morning that would eliminate a medical device tax included in the healthcare reform law.

The bill, raised by four Republican senators, would remove a new 2.3 percent tax hike on medical device manufacturers that would raise $20 billion in revenue over 10 years. The tax is set to go into effect in 2013.

“A $20 billion tax hike on medical device manufacturers to fund Obamacare will cripple an important engine of opportunity, job growth and innovation, while hurting the advancement of technologies essential to improving patient care,” Senate Finance Committee ranking member Orrin Hatch (R-Utah) said in a statement. 

AdvaMed, the industry group representing medical device manufactures, largely supported the reform law but held reservations about the law's medical device tax. On Thursday, the group endorsed the bill repealing the tax, but it reiterated its support for the reform effort.

"While AdvaMed supports repeal of the excise tax, it remains committed to the central elements of health reform that are consistent with our long-held principles, including expanded coverage, reform of the payment system to encourage quality and efficiency, and a new emphasis on health promotion and disease prevention," AdvaMed President and CEO Stephen Ubl said in a statement. "As other proposed changes to the bill are considered by Congress, we will evaluate them in the light of these principles and their impact on patients and medical innovation.”

The bill would repeal the tax without offsetting the cost.

"We are looking to straight repeal these job-destroying taxes," a Hatch spokeswoman said.