The 2.3 percent tax is expected to raise $29 billion over 10 years.
Politico: Medical Device Tax Set But Industry Still Fighting
The IRS has finalized details on the new medical device tax -- as the medical device industry has redoubled its efforts to get it repealed. The 2.3 percent excise tax on many medical devices, which is part of the 2010 health care law, takes effect Jan. 1. On Wednesday, an Internal Revenue Service final rule detailed plans to levy the tax. It was originally projected to raise up to $20 billion in revenues over 10 years, but the Joint Committee on Taxation later estimated it would be around $29 billion (Millman, 12/6).
Reuters: IRS Finalizes New Tax From Medical Devices In Health Care law
The U.S. Internal Revenue Service on Wednesday released final rules for a new tax on medical devices, products ranging from surgical sutures to knee replacement implants, that starts next year as part of President Barack Obama's 2010 health care law. The 2.3-percent tax must be paid, effective after December 31, by device-makers on their gross sales. The tax is expected to raise $29 billion in government revenues through 2022 (Temple-West, 12/6).
Modern Healthcare: Industry Rips Device Tax As Regs Arrive
The Internal Revenue Service issued its final regulations on the medical device excise tax, prompting renewed calls by manufacturers to repeal or delay implementation of the tax. A provision of the Patient Protection and Affordable Care Act mandates manufacturers pay a 2.3 percent tax on the sales of certain medical devices starting next month. The tax is considered the industry's contribution to financing the 2010 health care law. Providers and group purchasing organizations have previously raised concerns that manufacturers will pass through the cost of the tax to purchasers of medical devices, while trade groups representing device manufacturers have said the tax will lead to job losses and more broadly will have a negative impact on innovation in the medical technology sector. In a statement today, the Advanced Medical Technology Association again called for a repeal of the excise tax (Lee, 12/5).