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Charlotte NC

On 5th Anniversary Of ACA, Congresswoman Adams Introduces Legislation To Cut Medical Device Tax While Maintaining Important ACA Subsidies

March 23, 2015

Medical Device Tax Elimination Act Spurs Innovation and Job Creation

There Are 9 Medical Device Companies in North Carolina's 12th District

Washington, D.C. - On the 5thanniversary of the signing of the Affordable Care Act (ACA), Congresswoman Alma S. Adams (NC-12) today introduced the Medical Device Tax Elimination Act of 2015. The legislation would repeal the medical device excise tax to enhance innovation and job creation in the medical device industry; while maintaining healthcare subsidies for those in need. There are nine medical device companies in North Carolina's 12th District and medical device companies directly employ more than 6,000 people in North Carolina.

"The Affordable Care Act is working and is bringing quality healthcare to more of those who need it the most," said Congresswoman Alma Adams. "We've seen a historic reduction in the uninsured rate and North Carolinians no longer need to choose between a checkup and paying a bill. The medical device tax was used to expand healthcare coverage for more Americans, but in doing so, it harms the medical device industry and its employees.

"While many agree on the need to repeal the medical device tax, some have used this as an opportunity to try to derail the Affordable Care Act and cut important subsidies that allow more Americans to access health insurance. No North Carolinian or American should risk losing their health insurance and that is why my legislation eliminates the medical device tax while maintaining the subsidies for those who have signed up for coverage under the exchanges," Congresswoman Adams continued.

Currently, medical device companies are subject to a 2.3 percent tax on certain medical devices. This tax has caused some medical device companies to cut down on research and innovation, and has caused some companies to cut jobs or slow hiring. The Medical Device Tax Elimination Actof 2015 would eliminate the medical device excise tax in order to help medical device companies continue to invest in research and development, save jobs and continue to see growth. The legislation would offset the costs of eliminating the medical device excise tax by eliminating some subsidies for oil and gas companies.

According to the Department for Health and Human Services, more than 16 million previously uninsured Americans now have health insurance and this year alone, more than 1.5 million North Carolinians selected health insurance plans or were re-enrolled through the health insurance marketplace.

The Medical Device Tax Elimination Act is cosponsored by Representatives Niki Tsongas (D-MA), Matthew Cartwright (D-PA), Brian Higgins (D-NY) and Jared Polis (D-CO).

The full bill text is attached.