iBIO applauds U.S. House and U.S. Senate’s action to pass a 2 year suspension of the medical device tax and the 6 year reauthorization of the Children’s Health Insurance Program as part of the short-term Continuing Resolution (CR).
The medical device excise tax is a 2.3% excise tax on the sale of certain medical technology that was enacted as part of the Affordable Care Act. On January 1, 2018, after a two-year legislative suspension of the tax expired, the device tax went back into effect. With out the passage of the additional 2 year suspension, companies would have started making semi-monthly payments of the tax on January 29.
With more than 12,000 jobs and $5.2 billion to total economic activity, the medical device tax would have had a disproportional impact on Chicago’s Medtech community.
The 2 additional years of additional relief from the medical device tax represents an important step away from the full reinstatement of the tax. It is only an interim step toward the truly needed action by Congress to fully repeal this tax and unleash the promise of medtech innovation. iBIO looks forward to continuing to work with our partners on a bipartisan basis to fully repeal the medical device tax.
Children’s Health Insurance Program
Also contained within the CR is a provision that would fund the Children’s Health Insurance Program – or CHIP – for six years, the longest reauthorization ever. CHIP funds the All Kids program in Illinois, which covers more than 1.6 million kids who otherwise wouldn’t have access to health insurance.
The CR will provide short-term funding for the federal government through February 8th.