Issue Position: Health Care - Medical Device Tax

Issue Position

U.S. Representative Todd Rokita: Fighting for Hoosier Medical Device Workers

-Rep. Rokita has been a staunch advocate for the medical device community in Indiana.

-Indiana is a global leader in medical device innovation, with over 300 medical device manufacturers in the state, many of them small businesses.

-Small and large medical device manufacturers in Indiana employ approximately 20,000 Hoosiers across the state, and an additional 54,800 Indiana jobs are directly related to the medical technology industry.

-The greatest concern of medical device manufacturers in Indiana is the $30 billion device tax, passed as part of ObamaCare and set to take effect in January.

-This 2.3% excise tax will be imposed on gross sales receipts in excess of $5 million for manufacturers and importers of medical devices ranging from artificial hips, to MRI scanners, to cardiac defibrillators.

-There have been numerous reports of medical device manufacturers announcing layoffs, downsizings, and canceled expansion plans due to this tax. Companies like Stryker of Michigan blame the tax for 1,000 layoffs. Covidien has announced 200 layoffs and will move some production overseas. Indiana's own Zimmer has also announced 450 layoffs.

-Rep. Rokita has been an outspoken leader urging support and passage of H.R. 436, the Health Care Cost Reduction Act, to repeal this new job-killing tax on innovation.

-Rep. Rokita successfully recruited 74 of his freshmen colleagues to sign a letter to House Leadership supporting passage of H.R. 436. The bill garnered support from 240 bipartisan cosponsors, including every freshman Republican.

-H.R. 436 was passed by the House on June 7, 2012. Every Republican supported this measure and nearly 40 Democrats joined to repeal the onerous tax. It is now awaiting action in the Senate.

-Rep. Rokita also helped organize a Health Forum on Medical Device Technology in Indianapolis sponsored by Indiana University in October 2011, featuring representatives from Cook Medical and other Hoosier health care innovators, who explained how the tax would hurt their industry.

-If government gets out of the way, the medical device industry can continue to grow, create jobs, and innovate. Rep. Rokita is committed to preserving Indiana's leadership in the medical device industry.

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