GOP Senators take aim at device tax in healthcare bill

Senate Republicans on Thursday released a draft of their healthcare bill, which would permanently repeal the medical device tax, reports Regulatory Focus.

Here are five things to know.

  1. The medical device tax entails a 2.3 percent excise tax on the sale of certain medical devices, payable by the manufacturer or importer of the device. The tax was imposed in 2013 as a funding mechanism for the ACA.

  1. Devicemakers have long opposed the tax, arguing it hurts innovation and unfairly burdens smaller device manufacturers.

  1. In 2015, Congress temporarily suspended the tax on the sale of nonretail medical devices like pacemakers, heart valves and artificial hips.

  1. The Senate bill would permanently repeal the tax before it takes effect again in 2018.

  1. The American Healthcare Act, passed in the House last month, also called for a repeal of the tax.

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