Updated: 10/19/2009 8:52 PM KSTP.com | Print |  Email
By: Becky Nahm

MN GOP, DFL Oppose Medical Device Tax

Republicans and Democrats in Minnesota finally found something on which most of them agree. They oppose a proposed $4 billion a year sales tax on medical devices included in the Senate's health care reform bill.

The opposition is not surprising considering Minnesota has more than 300 medical device companies employing thousands of people.

According to opponents of the tax, it could cost jobs and stifle development of new medical technologies.

Republican Congressman Erik Paulsen held a hearing on the tax Monday in Plymouth.

Aaron Holm was one of the people who testified at the hearing. He was the victim of an accident and now has two prosthetic legs made by a Plymouth-based company.

Holm fears the tax would reduce the amount of money spent on research and development of new medical devices.

Holm said, "I realize every day as I age and I get older I need the products to get better. I need them to support me more and more."

Executives of small medical device companies said it usually takes years for a new device to become profitable even without the tax.

Robert Kieva, founder of CVRx, said, "With no profits to pay such fees, they would have to come from research and development and payroll."

While the tax is part of the Senate's proposed health care reform bill, it is not included in any of the three companion bills moving through the U.S. House.