Health Care Cost Reduction Act of 2012

Floor Speech

Mr. MURPHY of Connecticut. Mr. Speaker, I rise today to recognize the value of the medical device industry in my State and our nation as a whole. This industry is working on some of the most exciting and cutting-edge technologies in the entire health care sector and has changed the lives of millions of Americans.

According to estimates, the medical device industry employs approximately 430,000 nationwide. My State is fortunate to have a vibrant medical device industry with nearly 8,000 individuals directly employed at companies, such as BD and Covidien. These companies also support approximately 12,000 more in-direct jobs in my home state. Beyond providing quality, high-paying jobs, these businesses are responsible corporate citizens who are trying to enhance the communities where they are located and the people who live there. For example, employees at BD's plant in Canaan, Connecticut--which recently celebrated its 50th anniversary--have served as mentors to the Housatonic Valley Regional High School and have contributed generously to the United Way and other local charities. In line with a growing body of evidence on the positive impact bariatric surgery can have on diabetics, Covidien has worked with American Diabetes Association to fund new research on this potentially life-changing procedure.

Unfortunately, when the House recently considered the Health Care Cost Reduction Act of 2012 (H.R. 436), the majority included an offset that, according to the Joint Committee on Taxation, would result in 350,000 fewer Americans receiving health care coverage. As part of the Affordable Care Act, the Federal Government is set to provide millions of Americans with premium tax credits for the purchase of health insurance. This will not only increase rates of coverage but will also lead to lower overall health costs since more people are insured. The offset that was included in H.R. 436, known as the ``true-up'' provision, would have subjected these individuals to large repayment amounts if for some reason their income levels increased from the time that they were actually receiving coverage to the time they filed their taxes the following year. This could come as a result of the individual or spouse starting a new job or returning to work after school. While I could not support this legislation, I understand the need to reduce the medical device industry's burden in paying for health care reform.

Mr. Speaker, I believe that we can all agree that to maintain our position as the world leader in biotechnology, the United States needs to foster innovation and growth within our health care industries. I am proud that I represent a number of those companies and hope that we will find bipartisan solutions to create an environment where they will continue to succeed and develop new breakthrough therapies.

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