House passes bill to repeal medical device tax

  • O&P Business News, July 2012

The House of Representatives passed a bill repealing a 2.3% excise tax for medical devices, which would be levied on manufacturers and importers of surgical tools, artificial hips and knees, coronary devices and X-ray machines.

The Congressional Joint Committee on Taxation estimated that the excise tax would raise $29 billion over the next decade.

Although the vote was 270 to 146 in the House, critics believe the bill will not get through the Senate, which is mainly controlled by Democrats. President Barack Obama has also said he will veto the bill.

Scheduled to take effect in January, the excise tax on medical devices was imposed by Congress to help offset the cost of subsidizing insurance coverage for more than 30 million people in the US.

Comments

Healio is intended for health care provider use and all comments will be posted at the discretion of the editors. We reserve the right not to post any comments with unsolicited information about medical devices or other products. At no time will Healio be used for medical advice to patients.