House Floats Five Year Extension of Medical Device Tax
The widely unpopular medical device excise tax would be delayed for another five years under a tax relief package introduced by the US House Ways and Means Committee on Monday.The 2.3% levy on the sale of prescribed medical devices was in effect between 2012 and 2014 after it was enacted through the Affordable Care Act in 2010, but the pushback from industry has led to several moratoriums. It received a 2-year delay extension earlier this year as part of a continuing resolution.
Under the new relief bill, the 2018 moratorium on the device tax would be extended until 31 December 2024.
Device firms and industry groups have opposed the tax, citing hindered innovation efforts and job creation in the sector. “A 5-year moratorium will give companies greater confidence in planning long-term R&D—a component that is critical to maintaining the longevity of the industry and sustaining the innovation ecosystem,” said AdvaMed President and CEO Scott Whitaker.
The bill came as a broad coalition of health care organizations sent a letter to Congress urging a repeal.
US House Ways and Means Committee