(WASHINGTON, DC) – A bill cosponsored by Rep. Steve Knight (CA-25), which passed the House on Thursday, would abolish the current unpopular tax on medical devices.
Under current law, there is a 2.3 percent tax on companies that manufacture, produce, or import medical devices. H.R. 160, the Protect Medical Innovation Act, would repeal the provision of the Affordable Care Act that imposes this tax, removing the existing disincentive to create new health-related technologies. With 41 Democrats cosponsoring the bill, it enjoyed significant bipartisan support.
“The American people expect quality, affordable healthcare, and delivering it is impossible when the federal government stifles innovation and drives up costs by taxing medical devices,” said Representative Knight. “This is commonsense legislation that would help folks get the care they need.”
According to the California Life Sciences Association, California is home to more technology companies than any other state in the nation. Home to over 1,500 businesses and roughly 75,000 related jobs in the medical device industry, the tax has a significant negative impact on the Golden State’s economy as a whole. The Protect Medical Innovation Act would help the sector to grow and drive down prices on medical devices, making them more affordable.
“I’m proud to cosponsor such a bipartisan, commonsense bill that will truly make healthcare more affordable,” continued Knight.
H.R. 160 passed the House floor on a 280-140 vote on Thursday afternoon.
Representative Steve Knight, (R-Antelope Valley), represents California's 25th Congressional District in the US House of Representatives, which includes the communities throughout the Antelope, Santa Clarita and Simi Valleys.