U.S. Sen. Joe Donnelly said he would like to see Congress kill the medical device tax even though it’s already on life support. Donnelly was among the lawmakers who led the efforts last year to suspend the tax for two years and visited orthopedic giant Zimmer Biomet Monday in hopes of rallying support to permanently unplug the much-maligned tax. The new call for the tax’s repeal comes at the same time many expect President-elect Donald Trump to move quickly to repeal and replace the Affordable Care Act soon after he is inaugurated on Jan. 20. Exactly how the mammoth health care reform act will be revamped under Trump remains unclear. While some might suggest repealing the law would indeed kill the tax, Donnelly does not want to take any chances. Under the current circumstances, the tax’s demise should be a given, “but there’s no guarantee,” Donnelly said after touring part of Zimmer Biomet’s manufacturing plant on the company’s western campus. “What I am hoping for is a specific vote on the medical device tax,” Donnelly said. “If we have a specific vote, the vote would be very, very strong.” Donnelly argues that the health care costs for the 20 million Americans covered has ended up costing less than expected and that the revenues from the device tax are no longer necessary. His office points to a report from Urban Institute as well as the Congressional Budget Office. While opposed to the tax, Donnelly remains supportive of health care reform and expressed concern over continued coverage for the 20 million people who have gained coverage as a result. Those figures include 400,000 Indiana residents. Chris Cerone, Zimmer Biomet’s vice president of global government affairs, thanked Donnelly for his support in suspending the tax in 2015. Cerone said the tax has been a drag on innovation, which ultimately harms patients. He pointed out that the United States is the only country with such a tax and that it undermines U.S. companies like Zimmer Biomet. He supports killing the tax. “I think it will unleash a lot of innovation,” Cerone said. “The prospect of permanent repeal is a good one for us. It will give us the certainty and it will give us the confidence to make longer term investments in ... research, development and manufacturing that are so critical to our business.” The 2.3 percent tax on medical devices sold in the United States began in 2013 as a way to help offset costs under the Affordable Care Act, but was shelved by Congress late last year. Medical devices under the tax include a wide range of products, including many high-tech implants that are manufactured by companies in the Warsaw area. Zimmer employs about 4,500 people in Warsaw and there are another 2,000 jobs in the area that are directly tied to orthopedics, plus other companies that serve as suppliers. Warsaw Mayor Joe Thallemer toured the plant with Donnelly and left the meeting with a renewed confidence about the tax’s dim future. “Hearing his thoughts on the future seem to nail it down that this thing is going to happen,” Thallemer said. “Its time has come.” Attempts to kill the tax have gained strong support from numerous Indiana lawmakers, including Reps. Jackie Walorski and Marlin Stutzman. “Our constituents and our constituent industries are certainly appreciative that all of them are working to eliminate this thing,” Thallemer said, referring to the device tax. Officials said they also discussed other issues such as trade and regulations that are linked to the orthopedic industry.
