Change of plans over Industry Tax?

Medical device manufacturers have some positive news in the battle over healthcare reform taxation.

The medical device industry launched an aggressive campaign against the senate finance committee's plans to tax the industry to the tune od $40 billion over 10 years.

Under a compromised version of the House's affordable Health Care for America act released last week, devicemakers would be taxed $27 billion over seven years, beginning in 2013.

Under the House's proposal, the tax would be a 2.5% point-of-sale tax as opposed to an annual assessment based on overall sales. Devicemakers would also be able to deduct the House's tax on their annual corporate tax filings, bringing the net fee to about $20 billion over seven years- this according to Wanda Mobeius, spokeswoman for the devicemaker lobby group Advamed.

While Advamed has praised the House's action, some other voices have been less appreciative of the proposal, including the American Hospital Association, which has raised concerns that the additional tax could be passed on to hospitals and their patients.

However, others have in our view correctly warned that the wrangling over the tax is far from over, indicating that the House discussions may have little impact on the Senate's decision.

From Medicaldeviceguru.com