Medical device tax: Sen. Hagan says Congress should work on repeal
Members of Congress should work together to find a financially responsible way to repeal the medical device tax, Sen. Kay Hagan tells the North Carolina Chamber of Commerce.
Sen. Kay Hagan (D-N.C.) wants Congress to work together to repeal the medical device tax included in President Barack Obama's healthcare reform law, making her 1 of the few Senate Democrats to go on the record as opposing the tax.
Writing to Lew Ebert, president of the North Carolina Chamber of Commerce, Hagan said that although she supports the Affordable Care Act, she believes the 2.3% excise tax on U.S. medical device revenues should be rolled back in favor of another revenue source.
"I understand and share your concern with the medical device fee in the Affordable Care Act. When it was first proposed, I opposed its adoption. In October 2009, I joined with several of my Senate colleagues in writing to Senate Majority Leader Harry Reid that the fee 'could have significant ramifications for an industry,'" Hagan wrote, according to a copy of the letter obtained by MassDevice.com. "Now that the medical device fee is law, it is expected to generate a significant amount of revenue. According to the independent and non-partisan Congressional Budget Office, repealing the medical device fee will cost the federal government approximately $29.076 billion over the next ten years in foregone revenue. Yet, given the impact that this fee will have on North Carolina companies, I believe Congress should work together to repeal the fee in a fiscally responsible manner, without negatively impacting North Carolina's businesses, patients, or students."