Lawmakers push for medical device tax repeal

In a letter to House leadership, Rep. Scott Peters, D-Calif. and 17 other Democrats are calling for lawmakers to act quickly on a bill repealing the medical device tax before Memorial Day.

The 2.3 percent tax is levied on medical device manufacturers and importers that have revenue over $100 million. The funding provision of the Affordable Care Act is projected to raise $29 billion over the next 10 years.

However, opponents say the tax is essentially paid by providers, as it is passed on from the medical device companies to hospitals.

Peters cosponsored H.R. 160, the bill to repeal the medical device tax.

[Also: Medical device tax has healthcare providers on edge]

President Obama has indicated he would veto a repeal of the tax unless another funding mechanism is found.

The $90 billion medical device business has a concentration of companies in California, Massachusetts, New York and Minnesota.

Peters said repeal would be a relief to job creators nationwide and to San Diego, in particular.

“Congress must be supporting the growth of businesses that make these products in America and employ American workers,” Peters said. “San Diego’s and America’s future economic competitiveness depends on the success of our innovators.”

The May 1 letter urging repeal was sent to House Speaker John Boehner, R-Ohio, Minority Leader Nancy Pelosi, D-Calif. and Committee on Ways and Means Chairman Paul Ryan, R-Wis. and Ranking member Sander Levin, D-Mich.

The letter was released on Peters’ House website on May 11.

Here's the full (and very short) bill:

Twitter: @SusanMorseHFN