Budget Deal Looks Good For Medtech Industry, Opens Door For Device Tax Repeal

The two-year budget deal approved by House last week and the Senate yesterday — and now awaits Presidents Obama's signature — contains language with major implications for the medical device industry.

Forbes reported that "one industry got their way" in a sense: "The budget includes language that makes it easier to repeal the controversial medical device tax. It’s not a repeal. It just makes repeal easier. Baby steps for the medical device industry. The tax remains in place for now."

As Med Device Online previously reported, the medtech industry has been advocating for repeal of this tax throughout the duration of the lengthy fight over the budget. 

In another positive step for the medical device industry, the bill would give FDA access to user fees paid by tech companies over the next two fiscal years, releasing the fees from sequestration constraints, according to the Biotechnology Industry Organization (BIO).

Federal sequestration has pulled about $85 million in user fees from the FDA, Medical Design Online previously reported. 

With its eye on these provisions, the medical device industry praised the legislation.

AdvaMed commended budget negotiators "for their work in crafting a bipartisan budget agreement which ... allows FDA to access the full amount of user fees paid by industry for FYs 2014 and 2015, and calls for repeal of the medical device tax."

The legislation would last two years and turn off $63 billion in sequester spending cuts, The Hill reported. President Obama already supports it.