Ways and Means approves prospective medical device excise tax repeal

Medical device excise tax repeal

The House Ways and Means Committee today voted (25-14) to approve legislation to repeal the medical device excise tax for sales in calendar quarters beginning after the date of enactment (i.e., the legislation would be prospective).

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All Republicans and one Democrat (Rep. Kind) on the committee voted to approve the legislation.

The Joint Committee on Taxation (JCT) has estimated that the legislation would lose approximately $24.4 billion in revenue over a 10-year period (read the JCT revenue table).

The legislation does not include any provisions to offset the cost of repealing the medical device excise tax.

What’s next?

The House of Representatives is expected to vote on the legislation the week of June 15. The Senate Finance Committee has not yet scheduled a markup of similar medical device excise tax repeal legislation.

The White House has not announced a position on the legislation, which would repeal one of the revenue provisions of the Affordable Care Act.

background

As introduced by Rep. Paulsen, H.R. 160 [PDF 249 KB] Protect Medical Innovation Act of 2015, would have repealed the excise tax on certain medical devices retroactively, effective for sales after December 31, 2012.

Chairman Ryan, however, offered an amendment in the nature of a substitute [PDF 27 KB] changing the effective date to sales in calendar quarters beginning after the date of enactment.

The Ways and Means Committee voted to approve the amendment in the nature of a substitute.

The Ways and Means Committee also voted on other (non-tax) healthcare-related bills in today’s markup.

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