Will the Feds Use EHR Taxes to Raise $20B HIT Fund?

Wed, May 5, 2010

Show Me The Money

Medical device tax could pose big costs for consumers.

 

Now that the $787 billion American Recovery and Reinvestment Act of 2009 (ARRA) includes approximately$20 billion for healthcare IT, the administration is starting to throw a lot of money around. Just where is that $20 billion coming from?

Some industry folks think it could come in the form of a new tax on medical devices. In a recent post on the Health Data Management Blog, Editor-in-Chief Greg Gillespie spotlights this new tax – a 2.3 percent excise tax on medical devices set to go into effect in 2013. He says this figure hasn’t received much exposure in the media because it doesn’t sound like much – unless you’re in the medical devices market. The tax could generate almost $2 billion every year, says Gillespie.

Medical device manufacturers will try to find ways to pass the costs on to…

Click here to login and get access to this article if you already receive the HIT News Wire
If you've already signed in and are still seeing this screen, click here to refresh the page.
HIT News Wire
Free registration required for full access to articles.
You will also receive
  • Free updates on the latest developments affecting healthcare IT.
  • Discounts on 3rd party offers.
Join now
You must have javascript enabled to use this form
Bookmark and Share
, , , ,