Rep. Erik Paulsen (R-Minn.), facing a tough re-election campaign, is taking yet another run at repealing the medical device tax. Although the 2.3% levy on prescribed medical devices was enacted as part of the Affordable Care Act in 2010, it didn’t go into effect until 2012 and was mothballed two years later; that moratorium, extended earlier […]
medicaldevicetax
Study: Med device excise tax cost medtech R&D $34m
The 2.3% medical device excise tax that was imposed as part of the Affordable Care Act has cost the medical device industry approximately $34 million in R&D expenditures and $568 million across sales revenue, gross margins and earnings since its implementation, according to a new study. Results from the study, performed at Iowa State University […]
UPDATE: Senate, Congress vote to end federal shutdown, pause medical device tax
The U.S. Senate and House of Representatives reportedly voted today to end the shutdown of the federal government, reaching a compromise on immigration and setting the stage for another two-year pause on the medical device tax. The Senate voted 81-18 to advance a continuing resolution that would fund the government until Feb. 8, three days […]
Senate to vote on ending shutdown
Hopes for ending the federal government shutdown dimmed over the weekend after Senate Democrats and Republicans failed to find common ground over a stop-gap budget bill, with a vote scheduled for noon today that’s not expected to resolve the impasse. Democrats in the Upper Chamber last week united to stop passage of a House bill […]
Medtech CEOs: Hatch’s last stand should be medtech tax repeal
A trio of medical device CEOs are urging Sen. Orrin Hatch (R-Utah), who’s soon to retire after four decades in the Senate, to make permanent repeal of the medical device tax one of his final acts in office. The 2.3% excise tax on U.S. medical device revenues was in effect for two years before a two-year […]
House passes stopgap bill that would delay medical device tax; Senate Dems vow filibuster
Senate Democrats vowed to filibuster a stop-gap bill aimed at keeping the federal government open past a midnight deadline today, after the U.S. House yesterday passed the budget measure which would in part put a two-year pause on the medical device tax. The 2.3% excise tax on U.S. medical device revenues was in effect for […]
IRS won’t enforce penalties on medical device tax
The U.S. Internal Revenue Service yesterday said it won’t enforce penalties on companies making late payments on the medical device tax for the first three months of this year. The 2.3% excise tax on U.S. medical device revenues was in effect for two years before a two-year moratorium went into effect for 2016 and 2017. It went […]
Is tax reform good or bad for medical device companies?
Medical device companies and others in the healthcare sector stand to benefit from the tax reform Congress passed at the end of 2017, but the picture isn’t entirely rosy, according to a new report from S&P Global Ratings. In many ways, the report offers a corrective to the bullish statements coming from corporate CEOs such […]
Medical device tax: Shutdown-averting stopgap would delay tax, Senate bill would kill it outright
House Republicans last night presented their plan for funding the government ahead of an end-of-week shutdown deadline that would press the pause button again on the medical device tax, but it’s unclear whether the fractious GOP can unite in the face of Democrats’ opposition. The 2.3% excise tax on U.S. medical device revenues was in […]
Mass. Dems file Senate medical device tax repeal bill
The Massachusetts Senate delegation this week became the latest politicians to file a bill that would repeal the medical device tax enacted as part of the Affordable Care Act. The 2.3% excise tax on U.S. medical device revenues was in effect for two years before a two-year moratorium went into effect for 2016 and 2017. […]
Indiana Sen. Donnelly stumps for medtech tax repeal on Senate floor
Sen. Joe Donnelly (D-Ind.) took to the Senate floor this week to urge his fellow lawmakers to repeal the medical device tax, a 2.3% levy on medtech sales that went back into place on Jan. 1 after a two-year-long suspension. The tax, which is among other parts of the Affordable Care Act awaiting their fate […]