Contacts:   Derek Karchner (Pitts), 202 225-2411
                  
Lauren Shapiro (Eshoo), 202 225-8104
For Immediate Release
July 25, 2005

Pitts, Eshoo bill renews program for life-saving medical devices

Legislation fixes “trigger” that endangers popular program

Washington —Bipartisan legislation will be introduced today by Congressman Joe Pitts (R, PA-16) and Congresswoman Anna Eshoo (D, CA-14).  Once enacted, the Medical Device User Fee Stabilization Act of 2005 would make key changes to a popular program that has allowed companies to get life-saving medical devices, like pacemakers, catheters, contact lenses, defibrillators, or hip prosthetics, to patients in a timely manner.  The sponsors anticipate the bill will be added to the schedule for consideration on the House floor this week.

“Congress unanimously passed the Medical Device User Fee and Modernization Act (MDUFMA) in 2002,” said Congressman Pitts.  “The law overcame obstacles at the FDA that prevented timely approval of new medical technologies.  However, because Congress has not fully funded the program a ‘trigger’ in the original bill has slated it for expiration.  We can’t allow that to happen.  It’s simply too important and too effective in getting patients life-saving medical devices.”

Original enactment of this legislation spurred from concerns over the pace of the Food and Drug Administration’s lengthy review process and the need for consumers to have more access and choice in a shorter period of time.  This law replaced the entirely government-funded device review process with a system partially funded with fees paid by the manufacturers of the new technologies. Because of this legislation, the device approval time has been virtually cut in half.

“This program has significantly reduced the time it takes to get life-saving medical technologies to the market without compromising safety," said Eshoo.  “Though this legislation only authorizes the program for two more years, it’s a significant accomplishment and allows us to now concentrate on making the device approval process even better in 2007.”

In response to complaints that the Food and Drug Administration (FDA) did not have the resources to approve the sale of medical devices in a timely fashion, Congress unanimously passed the Medical Device User Fee and Modernization Act (MDUFMA) in 2002. 

Modeled after a similar program used to approve medicines and pharmaceuticals, the program became become popular among medical device manufacturers.  Before MDUFMA, applications for approval often languished at the FDA with no indication as to when they might be reviewed.  MDUFMA changed that by injecting resources into the FDA, enabling the agency to review and respond to these applications.

MDUFMA provided these resources by creating a stable funding base for device review programs through a combination of industry-paid user fees ($150 million) and increased appropriations for the Agency ($75 million) over five years. 

To ensure that fees are additive and that the Agency receives all of the funding envisioned over the five year period, a “trigger” in MDUFMA terminates the user fee program on September 30, 2005 if the resources prescribed in the law are not realized.  While Congress provided the $216.7 million required by MDUFMA for FY05, the funding is $40 million below the MDUFMA target due to shortfalls in FY03 and FY04.  To prevent the “trigger” from sun-setting the program in September, Congress must amend MDUFMA to reduce the appropriations target for the program over the five year period.

The Medical Device User Fee Stabilization Act of 2005 amends Section 738 of the Food, Drug and Cosmetic Act (Authority to Assess and Use Device Fees), by, among other things:

  • Capping annual increases in premarket application (PMA) fees;

  • Permitting FDA to use up to two-thirds of fees carried over from previous years in order to keep the program going.

  • Setting the small business revenue thresholds; and,

  • Requiring labeling and tracking of reprocessed medical devices intended for single use by the original manufacturer. 

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