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Upton celebrates the permanent repeal of the Medical Device Tax

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Washington, December 19, 2019 | Josh Paciorek (202-225-3761) | comments

WASHINGTON, D.C. – U.S. Rep. Fred Upton (R-St. Joseph) today issued the following statement after the U.S. Senate passed the 2020 spending package, which includes a permanent repeal of the Medical Device Tax. Upton voted for and the U.S. House passed the legislation earlier this week, and it now heads to the President’s desk to be signed into law.

“Protecting Michigan jobs and American medical innovation have been two of my top priorities, so the repeal of the Medical Device Tax is welcome news, especially for local employers like Stryker. Because of this repeal, Stryker could save nearly $100 million over the course of a year, allowing them to invest more into jobs, their employees, and research that will result in huge benefits for patients,” Upton said. “This is a huge bipartisan win for patients, jobs, and medical innovation in southwest Michigan and across the country.”

"Repealing the Medical Device Tax will provide a substantial boost to the healthcare innovation ecosystem," Kevin Lobo, Chairman and Chief Executive Office of Stryker, said. "It will enable Stryker to invest more in research and development, jobs, and innovation that will support our mission of working together with our customers to make health care better."

The 2.3 percent tax on the gross sales of medical devices became law as part of the Affordable Care Act but has not been collected over the past four years. The tax was set to take effect again in January.

Upton visited Stryker in Kalamazoo this past November to participate in an answer and question session with employees and see their innovative medical devices.

 

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