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Paulsen Initiative to Suspend Medical Device Tax Becomes Law, Boosting Minnesota Med-Tech Jobs and Access to Life-Saving Devices

Eden Prairie, Minn. – Congressman Erik Paulsen (MN-03) toured Cardiovascular Systems, Inc. in St. Paul this morning and heard firsthand how the recently-signed two-year suspension of the medical device tax will help small and mid-sized manufacturers grow and help improve access to these life-saving devices for patients. He was joined by members of the medical device manufacturing community throughout Minnesota.

“Protecting Minnesota jobs is a top priority of mine and getting rid of the medical device tax is critical to our state’s med-tech industry,” said Congressman Paulsen. “By suspending this tax, we’re encouraging more medical innovation, growing local companies and jobs, and increasing accessibility to life-saving devices. I will continue to lead the way for a permanent repeal, but am glad these innovators are getting two more years of relief.”

“We are committed to developing and commercializing innovative solutions for treating vascular and coronary disease,” said Scott R. Ward, Chairman, President and CEO of Cardiovascular Systems, Inc. “The permanent repeal of the medical device tax, which Congressman Paulsen continues to champion, would provide financial certainty as we plan long-term investments to improve patient outcomes.”

Congressman Paulsen is the chief author of legislation to permanently repeal the medical device tax, the Protect Medical Innovation Act. It has broad bipartisan support of 262 co-sponsors. In 2015, Congressman Paulsen secured a two-year suspension of the medical device tax, which was set to expire on Dec 31, 2017. A new two-year delay of the medical device tax was recently signed into law.

Cardiovascular Systems, Inc. (CSI), based in St. Paul, Minn., is a medical device company focused on developing and commercializing innovative solutions for treating vascular and coronary disease. CSI’s Orbital Atherectomy Systems treat calcified and fibrotic plaque in arterial vessels throughout the leg and heart in a few minutes of treatment time, and address many of the limitations associated with existing surgical, catheter and pharmacological treatment alternatives. Over 356,000 of CSI’s devices have been sold to leading institutions across the United States. The company currently has approximately 670 employees and, thanks to the two-year suspension of the medical device tax, they are saving about 30 to 40 jobs from being cut. If a full repeal continues, they expect to add more jobs and reach profitability as well.

Congressman Paulsen, a champion of small business and advocate of free enterprise, entrepreneurship, and innovation, serves on the House Ways and Means Committee, chairs the bicameral Joint Economic Committee, and is co-chair of the Congressional Medical Technology Caucus.

For more information on Congressman Paulsen’s work in Congress visit paulsen.house.gov

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