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Medical Device Tax’s Repeal Would Have Immediate Impact

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Photo: flickr (josh)

The Affordable Care Act requires a 2.3% tax on medical devices.

Governor Mike Pence and medical device industry leaders say a repeal of the Affordable Care Act’s medical device tax would have an immediate impact on the Indiana economy.

The Affordable Care Act contains an excise tax on medical devices expected to collect $30 billion from the medical device industry, which employs 20,000 Hoosiers.  Governor Mike Pence says Indiana is already experiencing negative consequences of the tax, with companies scaling back expansion plans that would have created jobs.

Mauricio Arellano is the executive vice president of Greatbatch, a medical device company with facilities in Indiana.  He says every penny spent paying the tax is taken away from investments in research or infrastructure.

“When we talk about investing in innovation, it means jobs,” Arellano said. “It means scientists.  When we talk about infrastructure, it means our inability to buy a CNC machine so that we can hire a machine operator in our Fort Wayne, Indiana facility.”

Arellano says his company will be able to make immediate investments back in the state once the tax is repealed.  Pence says offsetting the $30 billion cost of repealing the tax needs to be part of the discussion. The governor wants to see Congress and the president use the issue as a way to find common ground and end the federal government shutdown.

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