November 30th, 2009

Reports the Pittsburgh Post-Gazette:

Nestled in the 2,000-page Congressional health reform bills and largely overlooked amid high-profile debates about insurers and hospitals is a tax that is causing consternation in the growing medical device industry.

In their proposals, the House of Representatives and Senate took different routes to raise about $1 trillion over 10 years to pay for expanded health insurance coverage for nearly all Americans.

Both proposals would expand Medicaid and federal subsidies to permit lower-income Americans to purchase private insurance or a government-run option. Both also are seeking $20 billion in new taxes on medical devices over the next decade.

The House passed its bill Nov. 7; debate in the Senate could last for several weeks before a final vote. The two versions then must be melded together in conference committee, and the chambers would vote again on final legislation.

Device makers — including several in Western Pennsylvania — say their products are helping to save money in the health care system by providing items such as oxygen tanks that help sick patients to remain in their homes rather than hospitals.

The proposed taxes would cover a wide range of devices, from prosthetic legs and powered wheelchairs used by individual patients to beds and equipment used in hospitals.

Read more at the Post-Gazette.