The House Ways and Means Committee has released its fourth discussion draft of tax code reform legislation, including several healthcare-related changes.
Although the measure leaves Patient Protection and Affordable Care Act provisions largely untouched, it would repeal the healthcare reform law's 2.3 percent medical device tax. The tax applies to manufacturers, producers and importers of taxable medical devices.
This is not the first time House lawmakers have sought to repeal the medical device tax. Last October, House Republicans included a provision repealing the tax in their proposal to end the government shutdown, which resulted from federal lawmakers' failure to agree on a spending resolution. However, Republicans ultimately dropped the provision to repeal the device tax.
The recent tax reform legislation would also repeal a refundable health insurance coverage tax credit available to individuals who received certain unemployment assistance because of trade-related events and to those older than 55 who received pension benefits from the Pension Benefit Guaranty
Corporation.
Furthermore, the proposal would repeal the "medicine cabinet tax," which prohibits using funds from tax-free health accounts to purchase over-the-counter medication. The legislation would also repeal a tax credit for small businesses' employee health insurance expenses and terminate tax deductions and exclusions for contributions to medical savings accounts.
Additionally, the legislation would repeal a tax exemption for qualified nonprofit health insurance issuers, also known as CO-OPs, that have received loans or grants under the PPACA. The proposal would also eliminate special rules providing tax deductions and exceptions for Blue Cross and Blue Shield organizations.
More Articles on Healthcare-Related Taxes:
4 Changes Hospitals Can Make to Avoid the PPACA Excise Tax in 2018
Judge Rules PPACA Tax Credits Lawful in Federal Marketplace
IRS Issues Final Rule on PPACA Health Insurance Provider Fee