Medical device tax tab now at $30.5B

April 3, 2012 by MassDevice staff

The medical device tax will raise 50% more than the $20 billion the government said was needed to pay for med-tech's share of health care reform, with official government estimates pegging the total tab over 10 years at $30.5 billion. covers the medical device tax

For 2 years the medical device tax has been billed as the $20 billion price tag the med-tech industry must pay to cover its share of health care reform.

But as the levy moves closer to its January 2013 implementation, official government estimates and industry advocates now peg its price tag at $30.5 billion over the next 10 years. A analysis revealed that the med-tech tax will likely cost the industry much more than official Congressional estimates of $1.8 billion next year.

The revelation both calls into question the accuracy of current government estimates and those on which the tax was originally sold to industry, Congress and the American public by the bill's framers.

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Don't expect the feds to refund any money for overpayment if the bill does manage to make it to 2013 without being repealed, according to Richard Price, vice president for payment and health care delivery policy at industry lobby AdvaMed.