Battle over medical device tax is still raging

The U.S. government began to shut down this morning as a key provision of the 2010 Affordable Care Act (a.k.a. Obamacare) took effect. Most Republicans, however, are still targeting a delay of the individual mandate, which requires Americans to obtain health insurance.

Also still unresolved is a demand to repeal a 2.3% excise tax on medical devices that went into effect Jan. 1 as one of the funding mechanisms for the Affordable Care Act. As of mid-summer, about $1 billion was paid to the Internal Revenue Service via the medical device excise tax.

Leading medical device manufacturers say that the timing of the device tax is bad. Many have launched major restructuring programs in the face of declining revenues triggered by cost cutting and improved purchasing programs by leading hospitals....

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