Industry Prefers Fee in House Bill Over One Proposed by Senate

As debate continues on the Senate’s version of healthcare overhaul legislation, tax experts are taking a closer look at what its $2 billion device fee and other measures mean for large and small devicemakers. The Senate bill tasks the Treasury Department with calculating the amount a company would have to pay each year based on its percentage of the industry’s gross receipts. The bill would go into effect next year and would exempt Class I and II devices retailing for less than $100. The House bill would impose a 2.5 percent tax, beginning in 2013, on devices at the first taxable point of sale and exclude devices sold at retail stores.
Devices & Diagnostics Letter