Device makers to 'double down' against health law's tax

Medical device manufacturers vowed Tuesday redouble efforts to repeal the healthcare law's device tax as Congress faces a series of fiscal deadlines.

The Advanced Medical Technology Association (AdvaMed) told journalists  that it will try to attach repeal to a sequester replacement bill, the next continuing resolution, or as part of an overhaul of the tax code.

"We're going to double down on our repeal efforts," said AdvaMed President Stephen Ubl, citing House and Senate bills with fresh bipartisan support. "We're off to a strong start this year." 

The device tax was included in the Affordable Care Act as a way to raise revenue. Industry, along with many Republicans, have argued that it threatens the success of important U.S. businesses.

The medical device industry is "one of the few that creates a trade surplus," said David Dvorak, AdvaMed's chairman of the board.

Dvorak argued that the tax's logic — that it would be counter-balanced by a wave of business for device manufacturers as new patients enter the healthcare system — has "fallen apart."

"We are sending $97 million to the [Internal Revenue Service] every two weeks," he said. "That is money that could be going toward research and development."

The remarks took place at a press luncheon in Washington.

---