Medical Technology Caucus
I thank the gentleman from Minnesota. I can't think of anybody in the Congress who has done more for medical innovation, his leadership on the medical device tax, on FDA reform issues, than Mr. Paulsen. It's an honor for me to be here…
I thank the gentleman from Minnesota. I can't think of anybody in the Congress who has done more for medical innovation, his leadership on the medical device tax, on FDA reform issues, than Mr. Paulsen. It's an honor for me to be here tonight to discuss this issue before the House.
What we have done in a very strong and forceful bipartisan way, which is critically important and something we don't do nearly enough of in this Chamber, is to send a message that we want to protect the medical device industry in America. The innovations that are created in this country are second to none. The way that we handle the FDA process could be improved, and we are going to talk about that shortly.
But with regard to medical device issues in particular, I'm fortunate that the district I represent is home to a number of large and small medical device manufacturers that are doing great work right here in America, producing medical devices that we rely on in this country, that millions of Americans depend on.
And when we last year, in the last session of Congress, went through the debate and eventually passage of the health care reform bill--which I voted against--one of the issues that was in there was the medical device tax, which seemed pretty arbitrary. They were looking for sources of funding. They were looking for ways to make the bill come into balance. And one of the industries that they targeted for the tax was the medical device industry. I believe very forcefully that it was shortsighted. I think it was something that should not have been done. That's an industry that we have international leadership on in this country. It's an industry that millions of Americans have an everyday benefit from.
What we did was say, Well, you look at the portion of overall health care costs in the country that that industry represents, and you are going to create a tax that's going to pay for approximately that portion of that industry to go towards the health care bill. I didn't think it made sense then. I don't think it makes sense now. What I want to do, along with the gentleman from Minnesota and the other 202--the total of 204 cosponsors of this legislation--is just put common sense back in place to say, we want to continue to have those innovations take place in America, not in other countries; to continue to show the worldwide leadership that we have shown and to continue to allow American citizens to benefit from the great work that's being done across the spectrum, large and small, of medical device manufacturers in this country.
So the $20 billion cost that's associated with this tax is just the tip of the iceberg. We're going to lose a lot more than just the cost of what it's going to take to pay that tax if you're in the medical device industry. We're going to lose the innovation. We're going to lose the talent because we're competing with other countries for the top talent in the world, and where individual people want to reside when they undertake research and development of new drugs, new pharmaceuticals, and also new medical devices. This tax is absolutely the wrong thing to do, and I strongly support the gentleman's effort to repeal the tax. We're going to talk later on, and I'm going to join the discussion on FDA reform and some of the things we're doing, working together, but this medical device tax, the reason it has attracted bipartisan support for the repeal is because it makes no sense. It's burdensome, and it's absolutely the wrong thing to do.