Medical device tax: Group purchasers call out 45 "cost-shifting" medtech companies

February 28, 2013 by Arezu Sarvestani

The Healthcare Supply Chain Assn. names 45 medical device companies it says are shifting the cost of the 2.3% federal excise tax, among them Allergan and Invacare. coverage of the medical device tax

Medical device makers Allergan (NYSE:AGN) and Invacare (NYSE:IVC) are among the companies targeted by the Healthcare Supply Chain Assn. for allegedly shifting the cost of a new federal excise tax to their customers.

A new website sponsired by the organization is the latest effort in an ongoing battle between group purchasers and medical device makers over the 2.3% medical device tax that took effect at the start of the year.

Several surveys have shown that many companies plan to raise prices in order to cover the impact of the sales levy, but healthcare purchasing groups have pushed back, accusing some device makers of dodging their obligation to contribute to the cost of healthcare reform.

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Allergan and Invacare did not immediately return requests for comment.

Allergan has been quiet about its plans for dealing with the tax, but Invacare has made no secret of its intentions to pass the tax onto customers.