AdvaMed endorses AHCA

While every major hospital association opposes the American Health Care Act, which House republicans unveiled last week, one industry group voiced its support of the legislation, reports The Boston Globe.

The Advanced Medical Technology Association, which represents medical device companies, endorsed the ACA replacement plan, largely due to the legislation's measure to permanently repeal the medical device tax.

"Our engagement on the broader [GOP] bill is connected to and contingent on repeal of the device tax," AdvaMed's Chief Advocacy Officer J.C. Scott told the Globe. "We're laser-focused on that piece of it."

The medical device tax entails a 2.3 percent excise tax on the sale of certain medical devices. The tax was imposed in 2013 as a funding mechanism for the ACA, and suspended for two years in late January 2015. The tax is set to take effect again in January 2018, according to the report.

The device industry has passionately opposed the tax, claiming it hurts innovation and forces companies to lay off employees. Device makers cut about 29,000 jobs between 2012 and 2015 when the tax was in effect, according to data from the U.S. Department of Commerce. The tax also forced companies to limit research and capital expenditures, according to Mr. Scott.

While other hospital groups may oppose the bill, "Every association is representing the interests of its membership, just as we do.," Mr. Scott told the Globe.

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