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Coats, Pence Support Expansion Of Medical Device Industry

By Brandon Smith

Posted May 30, 2014

Later this summer, the Indiana legislature will devote a study committee to investigating ways the state can help medical device manufacturers.

Earlier this week, Sen. Dan Coats, R-Indiana, sat down with leaders from the industry in northern Indiana. He says he came away with two avenues for helping the sector, including getting the Food and Drug Administration to ease some of the lengthy restrictions on approving new technology.

"Some of these approvals take 7, 8 years. So they develop a new product and it takes forever to get through the bureaucracy in Washington," Coats says. "By the time they get it, something else new has come up."

The other way to help the industry is something both Dan Coats and Governor Mike Pence cite as a serious barrier to growth – the medical device tax contained within the Affordable Care Act.

Pence notes that 50% of the medical devices used throughout the world are manufactured in Indiana.

"So this gross corporate tax on medical device manufacturers is and will continue to be a direct hit on jobs in Indiana," Pence says.

Coats says a bipartisan group of lawmakers is looking for ways to replace the revenue that would be lost by eliminating the tax.

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