Now that Barack Obama returns to power, many medical device manufacturers are focussing their efforts against an upcoming medical device tax hike.
The 2.3 percent medical device tax is part of the president’s Affordable Care Act. Many healthcare companies were hoping that a Romney victory would see the end of this tax as his platform argued against healthcare reform. Many felt that the former republican candidate would see an end to the 2013 tax increase.
With Obama’s second term, healthcare reform continue. However, some device manufacturers remain optimistic that the tax can be repealed before it takes effect next year. According to the ACA, the medical device tax will impose a 2.3 percent fee on the sale of all medical devices. This even includes companies that have not made a profit. Under its current structure, companies will begin to pay the tax only a few weeks after its inception in January, 2013. Since many consider the time between election day and the seating of a new Congress a “lame duck” period, medical industry lobbyists will be pushing hard for repeal during this time period.