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For decades, Indiana has been a hotbed for developing cutting-edge medical technologies, devices and surgical tools. That’s why places like Indianapolis, Warsaw, Evansville, Spencer, Batesville and Bloomington have more at stake in the health care debate than many other American cities. The decisions Congress makes will not only affect patients across the country who benefit from products designed and made by hard-working Hoosiers, but they will also affect the livelihood of these workers, their families and neighbors and many communities in our state. With about 18,500 direct medical device jobs in Indiana and another 75,000 Hoosier families indirectly supported by these jobs, the medical device industry is a major contributor to Indiana’s economy.
Both the House and Senate health care reform bills include a proposed tax on Indiana companies that make artificial knees and hips, spinal implants, stents, cardiac devices and other medical wonders. The bill reported out of the Senate Finance Committee in October would have imposed a chilling $40 billion tax on medical device manufacturers – costing Hoosier jobs, adding significant costs to our health system and threatening innovation and America’s competitiveness in the global economy.
Our own Sen. Evan Bayh recognized the potentially devastating effect such a tax would have had on Indiana’s medical device companies and on jobs in our state during these challenging economic times and went to bat for the state with Senate Majority Leader Harry Reid. When Sen. Reid unveiled his new version of the bill, the tax was reduced to $20 billion over 10 years – largely as a result of Sen. Bayh’s advocacy on behalf of Indiana‘s medical technology workers.
The members of the Indiana Medical Device Manufacturers’ Council and the Hoosiers they employ truly appreciate Sen. Bayh’s efforts to save Indiana jobs by moderating the effect of this burdensome tax.
Nonetheless, concerns remain about the effect that such a tax will have on device innovation. We, and Sen. Bayh, recognize that there is work left to be done. Indiana’s medical device companies look forward to Sen. Bayh’s continued leadership on these issues of vital importance to our state.
ROBERT E. DURGIN President Indiana Medical Device Manufacturers Council Indianapolis
