The medical device tax was first imposed in January 2013 to help fund the ACA. After harsh criticism from legislators and the medical device industry, Congress passed a two-year suspension of the levy in 2015. While the suspension was set to expire Jan. 1, a stopgap bill signed into law by President Donald Trump Jan. 22, further delayed the medical levy. It was set to take effect Jan. 1, 2020.
The tax applies to products such as pacemakers and artificial joints, not devices directly sold to customers.
The House voted 283-132 to repeal the tax. Critics of the tax said it hinders job growth and innovation. Supporters of the tax said a repeal will deprive the government of about $20 billion over the next decade, according to The Wall Street Journal.
More articles on supply chain:
Reuters: Amazon in talks to buy Indian pharmacy chain
London drugmaker boosts injectable opioid supply for US hospitals amid shortage
Bayer pulls birth control implant Essure from US market: 5 things to know
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.