Paulsen, MN House Colleagues Send Bipartisan Letter Opposing Medical Technology Tax
Med Tech Industry Creates Jobs, Leads Innovation, Saves Money and Improves Quality for Patients

FOR IMMEDIATE RELEASE: September 16th, 2009
CONTACT: Luke Friedrich (952) 405-8510 / Andrew Foxwell (202) 225-2871

WASHINGTON – Congressman Erik Paulsen (MN-03), co-chair of the House Medical Technology Caucus, along with Minnesota Congresswomen Betty McCollum and Michele Bachmann sent a letter today to Senate Finance Committee Chairman Max Baucus, asking him to remove the new tax on medical device manufacturers included in his Senate health reform package unveiled this afternoon.   

“A tax on medical device manufacturers would kill jobs, lower health care quality, stifle innovation and hurt Minnesota’s economy,” Paulsen said.  “Any health reform package will have to clear both the House and Senate, and we want to ensure Chairman Baucus and his colleagues know they will face serious resistance to this misguided new tax in both legislative bodies.”

The text of the letter is below. 

September 16, 2009

Senator Max Baucus
Chairman
Senate Finance Committee
Washington, DC 20510

Dear Chairman Baucus:

We write to express our concern regarding the tax on medical device manufacturers included in the Senate Finance Committee health care reform proposal and the effect that a new tax could have on consumer prices, job creation and small businesses.

The medical technology industry continues to provide the essential tools of modern medicine and develops breakthrough treatments that save money and improve the quality of care for patients.  In the health care debate, medical technology should be viewed as a cost savings and an industry where growth should be incentivized, not taxed.

Medical technology employs hundreds of thousands of workers across the country, providing quality, high-paying jobs with payrolls well above state averages.  Moreover, it is a vital export industry with tens of billions of dollars in international sales.  In Minnesota, we have a burgeoning medical technology industry that includes both large manufacturers like St. Jude Medical and Boston Scientific, as well as hundreds of small manufacturers.

Much of this proposed tax would fall on small medical technology companies who face steep start-up costs at the beginning stages of development.  Adding another expense to smaller companies would be a disincentive for them to bring new products to market.

We agree that health care reform is needed and must be paid for, but this proposed tax would slow medical innovation, increase costs for consumers, and harm job growth.  It could also jeopardize the competitiveness of the American medical technology industry in the global marketplace.  On behalf of our many constituents who work in the medical technology industry and benefit from these devices, we urge you to reconsider this proposed tax.

###