St. Jude Medical Severs Ties to AdvaMed

St. Jude Medical Inc. is leaving AdvaMed, citing a disagreement over congressional proposals to tax medical devices to help pay for health care reform.AdvaMed has proposed to lawmakers that medical devices that are more complex should be taxed more. In a Nov.

November 11, 2009

1 Min Read
St. Jude Medical Severs Ties to AdvaMed

6 letter to Congress, AdvaMed said, "We recommend that the tax be differentiated by FDA product class to recognize the diversity of medical device products and the thousands of companies that develop and manufacture them."Daniel Starks, chairman and CEO of St. Jude Medical, said it was "inappropriate for AdvaMed to advocate for a specific policy that economically advantages a portion of its membership at the expense of other members," according to a letter to AdvaMed, reports the Minneapolis/St. Paul Journal.A spokesman for Medtronic Inc. has said the firm also opposed AdvaMed's tiered taxing scheme proposal. However, it hasn't announced any plans to change its status with the trade group.The Senate Finance Committee proposed a $40 billion tax on medical device taxes over the next 10 years, though the final bill to be voted on in the Senate could pare down that amount. The bill passed by the U.S. House would raise $20 billion, with the taxes not starting until 2013.

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