Reuters (12/6, Temple-West) reports that the
Internal Revenue Service on Wednesday released a final rule (pdf) on medical-device taxes,
under which manufacturers will have to pay a 2.3 percent tax on their gross
sales, starting in January, unless industry groups succeed with their calls, urging
Congress to repeal it. The tax is projected to generate $29 billion to help
fund the Affordable Care Act through 2022. Reuters quotes IRS spokesperson
Sabrina Siddiqui as saying, "The excise tax is on the medical device
manufacturers and importers (who) will now have access to 30 million new
customers due to the healthcare law."
CQ (12/6, Adams, Subscription Publication)
notes that although the "58-page final rule" explains "which
types of manufacturers will face the excise tax and filing requirements,"
the bulk of the document is "devoted to responding to comments from
manufacturers and others about which products are subject to the tax and under
what conditions." Unless Congress acts to change it, the rule mandates
that medical-device manufacturers must "start sending in semimonthly tax
payments starting Jan. 29." CQ adds that the release of the rule sparked
renewed outcries from industry groups. For example, Advanced Medical Technology
Association CEO Stephen Ubl issued a statement saying, "While Washington talks
about a fiscal cliff, this tax could push us off an innovation cliff, costing
as many as 43,000 jobs and hurting the ability of medical technology companies
to find tomorrow's treatments and cures." The rule "should be
repealed," Ubl added.
Modern Healthcare (12/6, Lee, Subscription
Publication) adds that the Medical Imaging and Technology Alliance "urged
lawmakers to pass legislation that would delay implementation of the excise
tax." Its Executive Director Gail Rodriguez issued a statement saying, "MITA strongly urges
Congress to enact legislation immediately to delay implementation of the
medical device tax." She stressed that, "ultimately, Congress should
repeal this job-killing tax."
DIA Daily is a digest of the most important news selected from thousands of sources by the editors of BulletinHealthcare. The presence of content or advertising does not endorse, nor imply endorsement of, any products or services by the Drug Information Association. Neither BulletinHealthcare nor the Drug Information Association is liable for the use of or reliance on any information contained in this briefing.
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