House Repeals PPACA Medical Device Tax

The U.S. House of Representatives voted by a 270 to 146 margin to strike down a 2.3 percent tax on medical devices, according to a Reuters report.

The tax — which is a provision of the Patient Protection and Affordable Care Act — is intended to help fund other provisions of the healthcare law. Republicans who introduced the legislation cite medical device industry studies that argue the 2.3 percent tax will drive up the cost of medical devices, create job losses in the U.S. and reduce overall investment in U.S.-made medical device products.

A recent American Action Forum study said the medical device tax could lead to nearly 50,000 job losses.

The Obama administration said the president will veto the bill should it reach the Oval Office. For that to occur, the legislation would need to pass through the Democratically-controlled Senate, which is an unlikely scenario.

More Articles on the Medical Device Tax:

House Prepares to Vote on Cutting Medical Device Tax Today
Bill to Repeal Medical Device Tax Likely to Come Soon
AHA, Others Urge IRS to Keep Medical Devices From Passing Tax to Customers

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