DOTmed Home MRI Oncology Ultrasound Molecular Imaging X-Ray Cardiology Health IT Business Affairs
News Home Parts & Service Operating Room CT Women's Health Proton Therapy Endoscopy HTMs Mobile Imaging
SEARCH
Current Location:
>
> This Story

starstarstarstarstar (1)
Log in or Register to rate this News Story
Forward Printable StoryPrint Comment

 

 

U.S. Healthcare Homepage

Reimbursement is lagging for MR-compatible cardiac devices Study finds hospitals on pace to absorb $400 million in extra costs

ACR and Georgia Tech partner to gain new insight on imaging claims data Using AI and big data analytics to improve healthcare delivery and policy

Robin Damschroder Henry Ford Health System appoints chief financial officer

Patient iP and Clinerion enhance access to real world data for clinical trials Improving the selection of trial sites, accelerate enrollment

From technology newcomers to data-driven wearable devices: The US healthcare market is quickly evolving Factors for success when prevention is better than a cure

General surgeon shortage in U.S. growing: report General surgical workforce shortage in 2050 is projected to be 7,047

Misread scans at Illinois VA led to visit from concerned Congress member 'They've got a lot of work to do'

Siemens collabs with MUSC to enhance care in South Carolina Partnership seeks to enhance quality of care and lower costs

Study finds managerial discretion drives voluntary medical device recalls Are physicians being relied on to screen out defective products?

IAMERS endorses FDA commitment to Collaborative Communities, wonders if OEMs will get on board Insights and commentary from IAMERS president, Diana Upton

Congress has delayed the medical
device excise tax for another two years

Medical device industry praises congressional delay of medical device tax

by John R. Fischer , Staff Reporter
OEMS and health care associations are rejoicing following the decision by Congress to implement another two-year delay of the medical device excise tax.

The suspension is one in a series of health care tax rollbacks included in a short-term spending bill passed late Monday, by a Senate vote of 81-18 and a House vote of 266-150, to reopen the government following a three-day shutdown. Its passage comes just days before the January 29 due date for the first payments under the tax.

Story Continues Below Advertisement

Source-Ray, Inc. - Innovations In Portable X-Ray

SRI is a leading Developer, Manufacturer & Supplier of Innovative Portable Imaging Equipment. We offer Lightweight, Agile, Easy to Maneuver Portable X-Ray Systems ideal for maneuvering in tight spaces. Call us at 631-244-8200



“AdvaMed applauds passage of the two-year suspension of the medical device tax,” president and CEO Scott Whitaker of the Advanced Medical Technology Association said in a statement. “This suspension is good news for American patients and American innovation. Congress' action – just days before medical technology innovators were set to start cutting checks to the IRS – means funds will not be diverted from current investments in jobs, capital improvements and research into new treatments and cures.”

The tax, a component of the Affordable Care Act, required manufacturers of diagnostic and treatment medical devices to pay a 2.3 percent tax on the sale of each of their products before the approval of its first two-year delay in 2015 by a bi-partisan coalition.

This initial suspension expired at the end of December 2017, prompting critics of the tax to call on Congress for further delays, as well as permanent repeal on the grounds that such taxes have and would continue to cut jobs in the medical device industry while hindering innovation for patient care in development and research.

“We have information from the U.S. Department of Commerce that showed once the tax went into place, its direct impact on the economy was a loss of nearly 29,000 jobs in the whole medical device industry,” Patrick Hope, executive director of the Medical Imaging & Technology Alliance, told HCB News prior to the passage of the bill. “There was another study that came out by the American Action Forum, and they are predicting that 25,000 additional jobs could be lost by 2021 if the tax is allowed to remain in effect. We know there’s a cause and effect here. We’re seeing how it negatively impacts our economy by job loss and by discouraging innovation in products.”

Supporters of the tax, however, consider the impact on manufacturers to be overstated, pointing to evidence such as a 2015 Government Accountability Office report that indicates a continual rise rather than decline in medical device sales under the tax. That trend could be due to the expansion of coverage under the ACA, boosting potential markets for their products.

While thrilled with the news, many are still holding out for permanent repeal.

“While the two-year suspension is welcome, it is only an interim step toward the truly needed action by Congress to fully repeal this tax and unleash the promise of medtech innovation,” said Whitaker. “We look forward to continuing to work with the Hill on a bipartisan basis to drive toward permanent relief.”

U.S. Healthcare Homepage


You Must Be Logged In To Post A Comment

Advertise
Increase Your
Brand Awareness
Auctions + Private Sales
Get The
Best Price
Buy Equipment/Parts
Find The
Lowest Price
Daily News
Read The
Latest News
Directory
Browse All
DOTmed Users
Ethics on DOTmed
View Our
Ethics Program
Gold Parts Vendor Program
Receive PH
Requests
Gold Service Dealer Program
Receive RFP/PS
Requests
Healthcare Providers
See all
HCP Tools
Jobs/Training
Find/Fill
A Job
Parts Hunter +EasyPay
Get Parts
Quotes
Recently Certified
View Recently
Certified Users
Recently Rated
View Recently
Certified Users
Rental Central
Rent Equipment
For Less
Sell Equipment/Parts
Get The
Most Money
Service Technicians Forum
Find Help
And Advice
Simple RFP
Get Equipment
Quotes
Virtual Trade Show
Find Service
For Equipment
Access and use of this site is subject to the terms and conditions of our LEGAL NOTICE & PRIVACY NOTICE
Property of and Proprietary to DOTmed.com, Inc. Copyright ©2001-2018 DOTmed.com, Inc.
ALL RIGHTS RESERVED