Not only did Congress reopen the government for business late Monday, they extended the suspension of the medical device tax, an urgent issue for orthopedic companies in Warsaw.
The stopgap spending deal that was signed by President Trump on Monday included a two-year delay of the 2.3 percent tax, which was originally included in the Affordable Care Act to help pay for the law’s health insurance subsidies.
The tax had been suspended for two years, but that period ended Dec. 31.
The agreement extends the suspension another two years.
The two-year suspension will cost the federal government about $3.7 billion during that time period, according to statnews.com.
The tax is now scheduled to go into effect again on Jan. 1, 2020.
Lawmakers have been seeking to permanently kill the tax, but an industry representative expressed appreciation for the short-term move.
Mark Leahey, president and CEO of the Medical Device Manufacturers Association, applauded the move by Congress “protecting medical technology innovation from the destructive impact of the medical device tax by suspending it for two additional years.”
“We remain committed to working with the broad, bipartisan coalition that supports a full and permanent repeal of the device tax this year so that this dynamic American ecosystem can deliver the next generation of cures and life-saving therapies, and provide the high-tech manufacturing jobs that develop them,” said Leahey in a statement posted on the group’s website.
U.S. Reps. Jackie Walorski of the Second District, and Jim Banks of the Third District, lauded the legislative move that also reauthorized the Children’s Health Insurance Program for six years.
“This legislation is important for northeast Indiana. It stops the job-killing medical device tax for two years, which is vital to employers and workers in our region. The legislation also extends CHIP funding for six years, an important program that serves 13,155 children in Indiana’s Third District,” Banks said.
Walorski called the legislation “common sense.”