Senate Revises Device Tax
The U.S. Senate Finance Committee revised a healthcare reform bill to exempt certain classes of devices from a $4 billion tax on medical device manufacturers and importers.
Committee Chairman Max Baucus (D-Montana) unveiled his initial bill on Sept. 16 that included a tax on device manufacturers and importers that would generate $4 billion annually to help pay for reform.
The aggregate fee that a company would pay each year is based on that company’s relative market share of domestic sales for the prior year, according to the bill.
The Finance Committee modified the bill to exempt sales of Class II devices that are sold at retail for up to $100 per unit, according to a release from the committee. The bill also exempts all sales of Class I devices from the calculation of the fee.
The committee began consideration on the modifications to the bill on Sept. 22. If the bill is signed into law, the fee would take effect for calendar year 2010 and thereafter. For more information on the modifications, click here.