Medical device companies collectively breathed a sigh of relief on Monday, January 22nd. Congress, as part of the stopgap spending bill, enacted a two-year delay on a 2.3 percent industry-wide excise tax. The tax officially began on December 31, 2017, but the delay was imposed before the first payment due date of January 29.
The medical device tax, which was introduced along with the Affordable Care Act to help pay for the law’s health insurance subsidies, will now go into effect on January 1, 2020. The Congressional Budget Office (CBO) estimates that the delay will cost the federal government $3.7 billion during the two-year period.
A permanent repeal of the tax has not yet been introduced, but follow Pearl Pathways on Twitter for immediate dialogue on legislation impacting the medical device and life science industries.