In response to an upcoming excise tax that is expected to cost the medical device industry $2.7 billion per year, a group of more than 400 medical device companies and other organizations recently sent a letter to House and Senate leaders, asking for a repeal.

The 2.3 percent excise tax – which was included in the PPACA – is set to begin in 2013. According to the industry letter, the tax will increase healthcare costs and will not be offset by any increased demand for medical devices. The letter was organized in part by the Advanced Medical Technology Association (AdvaMed), whose President and CEO Stephen Ubl stated: “If this tax is implemented in 2013, it will undermine our industry’s ability to create and maintain good jobs in the U.S., and worse, will lead to higher costs for patients, undercutting one of the primary goals of health care reform.”