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Affordable Care Act

House passes bill repealing medical device tax

Thomson Reuters Tax & Accounting  

· 1 minute read

Thomson Reuters Tax & Accounting  

· 1 minute read

House lawmakers on July 24 passed legislation permanently repealing the excise tax on importers and manufacturers of medical devices that was included in the Affordable Care Act (ACA or Obamacare). The House also passed other tax/health reform measures including one that would prohibit IRS from rehiring any individual who was previously employed by IRS but was removed for misconduct or whose employment was terminated for cause.

The Protect Medical Innovation Act of 2018 (H.R. 184), which eliminates the 2.3% medical device tax starting in 2020, was approved by a vote of 238-132. The, IRS workforce bill, Ensuring Integrity in the IRS Workforce Act of 2018 (H.R. 3500), which has bipartisan support in the Senate, passed by unanimous consent.

Other health care reform and tax related measures approved by unanimous consent included:

…the Water and Agriculture Tax Reform Act (H.R. 519) which permits tax-exempt mutual ditch or irrigation companies to earn income from dispositions of certain real property and stock interests without affecting their tax-exempt status, but requires that such income be used to pay the costs of operations, maintenance, and capital improvements of such a company; and

…the Equitable Access to Care and Health Act (H.R. 1201), which would expand the religious conscience exemption under the ACA to exempt individuals who rely solely on a religious method of healing and for whom the acceptance of medical health services would be inconsistent with their religious beliefs from the requirement to purchase and maintain minimum essential health care coverage.

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