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The New Jersey Life Sciences Vendors Alliance (NJLSVA) is a coalition of businesses, individuals and academia who provide goods and services to New Jersey’s life sciences companies.

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AdvaMed, MITA and MDMA Commend Congress for Including Suspension of the Medical Device Tax in Year-End Legislation

Capitol Dome flag faveWashington, DC, December 16, 2015 ― The Advanced Medical Technology Association (AdvaMed), the Medical Imaging & Technology Alliance (MITA) and the Medical Device Manufacturers Association (MDMA) today commended Congress for including suspension of the medical device excise tax in year-end legislation and urged its swift passage.

“We are extremely appreciative of the bipartisan efforts to include a two-year suspension of the medical device tax in the tax extenders legislation. Suspending the tax will be an important step in addressing the harmful effect it is having on research and development and continued medical progress.  On behalf of America’s medical technology companies, our employees and the patients we serve, we urge Congress to act swiftly on this legislation,” said AdvaMed Board Chairman Vincent A. Forlenza, chairman, CEO and president BD.

“MITA is encouraged by the inclusion of the two year suspension of the medical device tax in the tax extenders package, which comes at a crucial time for the medical technology industry,” said MITA Board Chairman Nelson Mendes, president and CEO of Ziehm Imaging Inc. “The tax has been a drain on the economy and has halted investment in research and development for advanced imaging and other life-saving technologies. We appreciate the bipartisan efforts of Congress in taking this step to protect U.S. jobs and innovation, and we urge them to support the legislation.”

“MDMA applauds the bipartisan agreement to suspend the medical device tax as a part of the tax extenders package, which if signed into law would boost innovation, job creation and patient care,” said MDMA Board Chairman Scott Huennekens, president and CEO of Verb Surgical. “Suspension of this onerous policy will empower med tech innovators to continue developing and delivering the cures and therapies of tomorrow, and will help protect America’s leadership position in this dynamic field.”

The 2.3 percent excise tax has been levied on the sale of medical devices that are fundamental to the practice of medicine both in diagnosing and treating disease.

The American medical technology industry is a true economic success story, providing jobs for more than 400,000 people, paying out salaries that are 40 percent more than the national average ($58,000 vs. $42,000), and investing nearly $10 billion in research and development annually to advance patient care in the United States and around the world.

The industry is fueled by innovative companies, the majority of which are small businesses, with 80 percent of companies having fewer than 50 employees.