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Welcome to Congressman Larry Bucshon

Representing the 8th District of Indiana

Bucshon pressures the Obama Administration to repeal the medical device tax

June 4, 2013
Press Release

“I would urge the Administration and yourself to relook at the medical device tax as a way to fund the Affordable Care Act.”

 

Health and Human Services Secretary, Kathleen Sebelius, responding to questions from Rep. Bucshon  
 

(Washington, DC) – At a hearing held by the House Education and the Workforce Committee, Rep. Larry Bucshon (R-IN) called on Health and Human Services Secretary, Kathleen Sebelius, and the Obama Administration to reconsider using the medical device tax as a means to fund the Affordable Care Act.  

“I would urge the Administration and yourself to relook at the medical device tax as a way to fund the Affordable Care Act,” Bucshon told Sebelius.   

Indiana is home to over 300 medical device companies, with an economic impact of over $10 billion a year. Companies in Indiana, like Cook Medical, have already scrapped plans for expansion here in the state citing the 2.3% medical device tax levied by the Affordable Care Act.

Rep. Bucshon opened his questioning by highlighting that, “the medical device tax that is in the Affordable Care Act is damaging the industry [medical device].” 

Bucshon went on to point out that repealing this job killing tax has garnered bi-partisan support in Congress.  Medical device repeal passed the Senate 79-20 during their budget process and last Congress it passed the House 270 – 146 with 37 Democrat votes.  

Yet, even with this bipartisan support, Secretary Sebelius informed Bucshon that the Administration has no intention of repealing this tax. 

The full video of Bucshon’s questioning can be accessed here - http://www.youtube.com/watch?v=NjQquM4TO4c&list=PL4CE9BC61F1ADA6A6&index=2

BACKGROUND:

“Cook Medical Inc. had been planning to open five new manufacturing plants over the next five years in small communities around the Midwest, including Indiana, but has shelved those plans because of the hit it will take from a new U.S. tax on medical devices.” (Indiana Business Journal; 7/27/12

“Kem Hawkins says the tax will cost Cook $20 million this year and slow down the development of new products. The company has halted U.S. expansion because of the tax.” (Inside Indiana Business; 1/3/2013). 

In February, Rep. Bucshon signed on as an original co-sponsor to H.R. 523, a bill that would repeal the medical device tax.  This bill was put forth in a bipartisan manner by Rep. Erik Paulsen (R-MN) and Rep. Ron Kind (D-WI).  Bucshon also joined his colleagues in the House to repeal this tax by passing H.R. 436 during the 112th Congress. H.R. 436 passed the House 270-146 with 37 Democrat votes. 

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