$20 billion device tax lives on in new White House healthcare proposal
February 22nd, 2010A 10-year, $20 billion tax on medical device makers would begin in 2013 under President Barack Obama’s new healthcare reform proposal.
It’s déja vu all over again for medical device manufacturers that may have thought the election of Sen. Scott Brown in Massachusetts would kill the dreaded $20 billion medical device tax.
That’s because President Barack Obama’s legislative proposal for overhauling the healthcare system, released by the White House today, includes the very same 10-year, $20 billion tax on the medical device industry that was included in earlier healthcare reform bills.
The excise tax, which would be administered by the Internal Revenue Service, will not be implemented until 2013, according to the 11-page proposal. The rollout deadline marks a change from the Senate’s healthcare reform bill, which passed on Dec. 24, 2009. That bill had the approximately $2 billion-per-year tax on the industry beginning in 2011. (In December, an amendment sponsored by Evan Bayh (D-Ind.) and Amy Klobuchar (D-Minn.) to push the date back to 2013 wasn’t adopted in the final Senate bill.)
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