AdvaMed opposes $4 billion device tax

Medical device industry lobbying group Advanced Medical Technology Association (AdvaMed) of Washington, DC, has gone on record as opposing a proposed tax on medical device and diagnostics firms.

The tax is part of a "framework" proposal proffered by Sen. Max Baucus (D-MT) as a means of breaking the logjam over healthcare reform in the U.S. Congress. The proposal would levy a tax on medical device and diagnostics firms designed to raise $4 billion annually beginning in 2010. The tax would be assessed based on manufacturers according to their U.S. sales.

In a letter to Baucus and Sen. Charles Grassley (R-IA), AdvaMed said that the impact of the tax would be felt on a wide variety of products, from eyeglasses to artificial heart valves to advanced diagnostic imaging equipment. It notes that if coupled with other proposed cuts being considered, the tax could amount to a "double hit" to some device sectors, such as medical imaging, and would increase costs for consumers, physician practices, and hospitals.

Co-signers on the letter included various healthcare groups, including the American College of Radiology (ACR) of Reston, VA, and the Medical Imaging and Technology Alliance (MITA) of Arlington, VA.

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