ACA's medical device tax takes effect: 3 things to know

A delay on the ACA's medical device tax expired Jan. 1, putting the 2.3 percent levy into effect, according to a Reuters report.

Here are three things to know.

1. Federal officials imposed the tax on the sale of certain medical devices in 2013. Two years later, Congress approved suspending the tax, reportedly after criticism from the medical device industry and lawmakers.

2. The suspension was set to expire Jan. 1 without action from lawmakers, and various healthcare advocacy groups had sought to repeal the tax before 2018. Ultimately, though, the tax was included in the GOP's tax legislation signed by President Donald Trump last month, according to Reuters.

3. The publication reports critics contend the tax has cut medical industry jobs, while supporters argue it has helped decrease the uninsured rate.

 

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