WASHINGTON, D.C.–The Medical Device Tax goes back into effect Jan. 1, and if it does, some lawmakers believe it could cost people jobs. It could also stifle medical innovation, said Rep. Jackie Walorski (R-Ind.), who has written a bill to permanently repeal the tax.

“The Medical Device Tax, as y’all remember, is a 2.3 percent tax on the sale of most medical technologies that was enacted as a part of ObamaCare,” said Walorski earlier this year in the U.S. House, explaining her bill, which she pushed again on Twitter Wednesday.

“It’s clear the Medical Device Tax would raise costs for patients and put American jobs and medical innovation at risk if Congress doesn’t act by January 1,” she Tweeted. “That’s why we need to pass my bill, the Protect Medical Innovation Act, to permanently repeal this tax.”

Medical devices can mean X-ray or MRI machines, hospital beds, or most industrial-use machines used by hospitals or doctor’s offices. The tax generally isn’t charged to consumers for devices like hearing aids or contacts.

Walorski argues that the tax will cost companies billions of dollars that they could be using to find ways to make medical treatment better for people, and that the money paid to the government might’ve otherwise been used to keep Hoosier jobs.

“Hoosiers are proud to be leaders in medical innovation, with more than 300 medical device manufacturers in my state that support nearly 55,000 good-paying jobs,” she said.

The tax was suspended in 2016. Before that, the tax is credited with the loss of 29,000 jobs across the country.

 

 

Photo by Natanael Melchor on Unsplash