Budget Resolution Suspends Medical Device Tax for 2 Years

A continuing resolution (see earlier story) that ended the government shutdown and sent FDA staff back to work also included a two-year suspension of the medical device excise tax. The tax was the brainchild of the Obama Administration and was intended to help offset Obamacare healthcare expenses.

“This suspension is good news for American patients and American innovation. Congress’ action – just days before medical technology innovators were set to start cutting checks to the IRS – means funds will not be diverted from current investments in jobs, capital improvements and research into new treatments and cures,” advocacy group AdvaMed says. ““While the two-year suspension is welcome, it is only an interim step toward the truly needed action by Congress to fully repeal this tax and unleash the promise of medtech innovation. We look forward to continuing to work with the Hill on a bipartisan basis to drive towards permanent relief.”