The Protect Medical Innovation Act would repeal the tax on medical devices created by the Affordable Care Act (ACA). The medical device excise tax is payed by medical manufacturers. The revenue generated from the tax is used to fund the ACA. Bill sponsor Rep. Erik Paulsen (R-MN3) issued a press release on the bill, in which he criticized the tax for making production more difficult for medical manufacturers. Proponents of the bill have argued since the ACA has caused an increased demand for health insurance, it has also caused an increased demand for medical devices, which benefits manufacturers enough to offset the tax. The bill has 241 Republican and 41 Democratic cosponsors. It passed the House on June 18.
The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress, and was published on Jun 18, 2015.
Protect Medical Innovation Act of 2015
(Sec. 2) This bill amends the Internal Revenue Code to repeal the excise tax on medical device manufacturers and importers.
This repeal applies to sales in calendar quarters beginning after the enactment of this Act.
(Sec. 3) Prohibits the budgetary effects of this Act from being entered on either PAYGO scorecard under the Statutory Pay-As-You-Go Act of 2010.