The world’s largest pure-play medtech company shelled out $21 million during fiscal 2013, according to regulatory filings. Medtronic’s fiscal year closes near the end of April.
The medical device tax is an excise levy on all U.S. sales of prescribed medical devices. The 2.3% tax went into effect at the beginning of calendar 2013, 3 years after President Barack Obama signed the Patient Protection & Affordable Care Act into law.
Medtronic’s $21 million tab for the medical device tax was for the fiscal year ended April 26, 2013, amounted to 0.1% of the $16.59 billion in sales logged that year and 0.6% of the $3.47 billion in profits the company reported. But that only covered the 1st 4 months of the tax; the cut for the full 12 months ended April 24 was much deeper.