Medical Device Tax Payments Surpass $1 Billion

The Affordable Care Act, often labeled as Obamacare, led to significant regulatory changes in the United States healthcare system. While the individual mandate and mandatory employee healthcare have been lamented by many groups, the 2.3% medical device excise tax on revenue has faced a significant amount of blowback due to its financial repercussions.

As of now, an estimated $1 billion has been paid out by medical device manufacturers to comply with the medical device tax. With these additional funds lining IRS coffers, many groups are voicing their concerns. In particular, the Medical Device Manufacturers Association, the Advanced Medical Technology Association (AdvaMed) and the Medical Imaging & Technology Association have decried the tax as a job and innovation killer. Many industry groups lament the loss of capital that could be used to support jobs, capital investments and R&D.

A gleam of hope still remains for repeal of the tax. There are bipartisan majorities in both the Senate and the House of Representatives that support repeal. In March of this year, a group of 79 senators voted to adopt an amendment that would repeal the medical device tax in the 2014 fiscal year.

“Each day that goes by with the medical device tax in effect is a major roadblock for patient care, job creation and innovation,” stated MDMA CEO and president Mark Leahey. “This issue is a shining example where there is overwhelming bipartisan support in both chambers of Congress to right a wrong, and MDMA continues to work with all stakeholders to get repeal of this onerous policy across the finish line.”

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Source:http://www.qmed.com/news/medical-device-tax-payments-surpass-1-billion?cid=nl_qmed_daily