Senate Healthcare Bill Would Repeal Medical Device Tax
Senate Republicans unveiled their version of a bill to replace the Affordable Care Act which would repeal the ACA’s medical device excise tax.
The medical device tax, a 2.3 percent levy on U.S. sales of prescribed medical devices, went into effect in 2013 but is currently on a two-year moratorium that began in January 2015. If changes are not made—via a repeal-and-replace move on ACA or another bill, as with the current but temporary relief—it is set to be reinstated in 2018.
Estimated to bring in about $20 billion over 10 years, the tax is intended to ensure that the medical device industry contributes to the cost of healthcare reform provisions under ACA while benefiting from higher sales under the law’s improved health coverage.