A provision to tax the medical device industry in the U.S. Senate’s healthcare reform bill would cost $19.3 billion over 10 years, according to a review by the Joint Committee on Taxation.
The tax, effective beginning in 2010, would be allocated “based on market share of certain medical device sales” beginning after Dec. 31, 2008, according to the committee.
Here’s how the proposed tax would break down:
- 2010: $1.8 billion
- 2011: $2 billion
- 2012: $2 billion
- 2013: $2 billion
- 2014: $2 billion
- 2015: $2 billion
- 2016: $2 billion
- 2017: $2 billion
- 2018: $2 billion
- 2019: $2 billion
- 2010-14: $9.6 billion
- 2010-19: $19.3 billion
If the Senate approves the bill — not a sure thing by any means — it must still be reconciled with the U.S. House of Representatives version before hitting President Barack Obama’s desk.