Rosenberger to introduce resolution to protect emergency medical device industry

State Representative Cliff Rosenberger (R-Clarksville) will soon introduce a resolution to urge Congress and the president of the United States to enact U.S. House Bill 1310, sponsored by Congressman Mike Turner (R-Ohio), to exempt certain qualified emergency medical devices from the impending federal excise tax on medical devices.

Turner introduced this legislation April 1, 2011 to be effective January 1, 2013. 
 
Ferno-Washington (Ferno) headquartered in Wilmington, raised concern about the impending federal excise tax because it would greatly affect the company’s ability to continue to do business in Ohio. Ferno is a global supplier of first responder patient handling equipment and would be subject to the 2.3% excise tax, as would all similar Ohio companies.
 
The premise behind the excise tax is that with new federal healthcare mandates, healthcare coverage will expand and cause an overall growth in the healthcare industry. However, this means little for the emergency response industry, for which Ferno is a supplier and who often rely on the public sector for its resources.
 
Local municipalities are reducing costs and are challenged to invest in emergency response equipment at the same growth rate expected in the rest of the healthcare industry. The impact would require these companies to absorb this mandate despite their relatively unaffected market. The result would likely cause companies, such as Ferno, to outsource their business to countries without burdensome mandates which are prohibitive to competing in the global market.
 
“Congressman Turner’s legislation, H.R. 1310, would help to protect an industry sector which is an important piece to our state’s economy,” said Rosenberger.

“The medical technology industry and companies, such as Ferno, provide good, secure, high paying jobs that produce innovative devices used at the most critical moments of saving a life. Legislation should be aimed towards fostering growth and success by creating an environment to enable these companies to continue to be competitive globally; rather than to act as another hurdle to overcome.”