Health care divide leaves tax on path to reinstatement
BOSTON | The industry that makes medical devices from artificial hips to miniature pumps for IV drips is looking for a fallback plan to repeal a widely reviled sales tax that almost met its end in GOP health care legislation.
The 2.3 percent excise tax has been the subject of ferocious lobbying by manufacturers seeking its permanent death.
Yet for now it is on track to be reinstated on Jan. 1 after a two-year hiatus, leaving industry leaders worried it will hurt employment and stifle development of innovative products.
Industry trade groups say medical device companies shed 29,000 jobs from 2013-2015 when the tax was in effect, but 70 percent have added jobs since the suspension of the tax.
The tax is one of several designed to raise money to pay for expanded coverage options under the Affordable Care Act.