House panel OKs med device tax repeal

The U.S. House Ways and Means committee has approved a bill sponsored by Minnesota Rep. Erik Paulsen that would repeal a tax on medical devices.

Paulsen's bill would eliminate a 2.3 percent tax on medical devices that was created to help pay for the 2010 health care overhaul. Many device companies are based in Minnesota, including Medtronic.

Paulsen and other Republicans say the tax will drive those companies out of business and worsen public health.

"As the population is aging, a tax on new innovative treatments and health care solutions is going to slow medical advancement and put the health of our citizens more at risk," he said.

U.S. Rep. Mike Thompson, D-Calif., said that while he wasn't a fan of the tax, it was needed.

"It helped pay for legislation that was passed that will increase by 30 million people the amount of folks that will be insured," he said.

The full House is likely to vote on the bill next week.