House Votes to Repeal Medical Device Tax

Source:

"The Health Care Cost Reduction Act of 2012 would repeal a 2.3% excise tax on gross sales receipts in excess of $5M for manufacturers and importers of certain medical devices, including defibrillators, pacemakers and prosthetic limbs. Congressional budget officials estimate that the tax would raise nearly $30B in revenue between 2013 and 2022."

Washington Post, Ed O'Keefe

Launching a summer-long effort to chip away at the 2010 healthcare reform law, the House voted Thursday to repeal a key funding source for the reforms.

The Health Care Cost Reduction Act of 2012 would repeal a 2.3% excise tax on gross sales receipts in excess of $5 million for manufacturers and importers of certain medical devices, including defibrillators, pacemakers and prosthetic limbs. Congressional budget officials estimate that the tax, set to take effect Jan. 1, would raise nearly $30 billion (B) in revenue between 2013 and 2022.

Even though the bill has passed the House, it has no hope of consideration in the Senate.

Republicans backing the bill cite a study by the $140B medical device industry that warns that the tax could result in higher prices for some medical devices and the loss of up to 43,000 manufacturing jobs.

The White House said it opposes repealing the tax on medical device manufacturers because it would pass the law's costs off to low- and middle-income Americans. . .View Full Article

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