03/20/2014 09:00 AM Senate STATE AFFAIRS

                   HJR 20-MEDICAL DEVICE TAX                                                                                
                                                                                                                                
9:03:06 AM                                                                                                                    
CHAIR DYSON announced the consideration of HJR 20.                                                                              
                                                                                                                                
9:03:32 AM                                                                                                                    
REPRESENTATIVE BOB LYNN, Alaska State Legislature, Juneau,                                                                      
Alaska, HJR 20 sponsor. He presented a sponsor statement as                                                                     
follows:                                                                                                                        
                                                                                                                                
     HJR  20 is  about  pacemakers,  artificial hips,  heart                                                                    
     stints,  surgeon   birth  control  devices,   CAT  scan                                                                    
     machines, robotic surgical devices,  and a multitude of                                                                    
     other very  important medical devices,  medical devices                                                                    
     that  might someday  save your  life or  the life  of a                                                                    
     loved one.  Medical devices are expensive  as you know,                                                                    
     very, very  expensive. The  2.3 percent  Medical Device                                                                    
     Tax  (MDT),  as  part  of   the  Affordable  Care  Act,                                                                    
     increases the already high cost  of medical devices and                                                                    
     the  extra  cost will  be  passed  on  in one  form  or                                                                    
     another down to  patients. The MDT had  a very chilling                                                                    
     effect on  new medical device innovation  and increases                                                                    
     the cost of manufacturing.  We are talking about almost                                                                    
     $4 billion  a year and that  of course is very  bad for                                                                    
     business,  in fact  it's  antibusiness;  it's not  only                                                                    
     that, but  at worst,  the MDT is  bad for  patients and                                                                    
     increases the already astronomical  cost of health care                                                                    
     and that's  why I  brought this resolution  before you,                                                                    
     it  urges the  elimination of  the MDT,  it came  to my                                                                    
      attention this morning, there is a Washington Times                                                                       
     article on this subject.                                                                                                   
                                                                                                                                
9:04:47 AM                                                                                                                    
SENATOR WIELECHOWSKI joined the committee meeting.                                                                              
                                                                                                                                
9:05:25 AM                                                                                                                    
NICK   LEWIS,   Staff,    Representative   Lynn,   Alaska   State                                                               
Legislature, Juneau, Alaska, explained  that the Washington Times                                                               
article  quotes  a finding  by  the  Advanced Medical  Technology                                                               
Association (AMTA) that  companies have cut 14,000  jobs and have                                                               
decided not to hire 19,000 workers due to MDT.                                                                                  
                                                                                                                                
SENATOR  GIESSEL   noted  that   the  Washington   Times  article                                                               
indicated  that the  U.S. Senate  voted overwhelmingly  to repeal                                                               
MDT. She asked for an update on MDT's status.                                                                                   
                                                                                                                                
MR. LEWIS replied that MDT has currently not been repealed.                                                                     
                                                                                                                                
CHAIR  DYSON  asked  if  anyone  wanted  to  testify  or  if  the                                                               
committee had any further questions or comments.                                                                                
                                                                                                                                
9:08:17 AM                                                                                                                    
SENATOR  GIESSEL moved  to report  HJR  20, labeled  28-LS1072\U,                                                               
from committee with individual  recommendations and attached zero                                                               
fiscal note.                                                                                                                    
                                                                                                                                
9:08:34 AM                                                                                                                    
CHAIR DYSON said  without objection, HJR 20 is  reported from the                                                               
Senate State Affairs Standing Committee.