December 17, 2019

Medical Device Tax To Be Permanently Repealed

Congressional leaders have included the full and permanent repeal of the 2.3% excise tax on medical devices as part of a deal to fund the government.

The bill was passed by the House of Representatives today and the Senate is expected to pass the legislation by the end of this week. President Trump has indicated he plans to sign the bill into law. The bill also includes full repeal of the Cadillac Tax and the Health Insurance Tax.

Other healthcare funding included in the $1.4 trillion package is:

• $41.7 billion for medical research at the National Institute of Health – a 7% increase from current levels
• Delays cuts for disproportionate-share hospitals through May 22, 2020
• Two years of Medicaid funding for Puerto Rico and other U.S. territories
• Language from the CREATES Act – which prevents drug makers from limiting access to brand and biologic drugs necessary for generic and biosimilar drug development
• Bars HHS from ending auto-reenrollment in the Affordable Care Act exchanges known as “silver loading”
• Ten years of funding for the Patient-Centered Outcomes Research Institute that sponsors comparative-effectiveness research to evaluate which health treatments pose the greatest benefit and harm

The funding bill did not include any of the sweeping legislative proposals to address surprise billing or drug pricing, both top priorities for Congress expected to be addressed next year.

Please feel free to reach out to HIDA Government Affairs with any questions at HIDAGovAffairs@HIDA.org or at 703-549-4432.