US Congress Suspends Medical Device Tax through 2019

February 2, 2018: By Joan McKenna

US lawmakers have suspended the medical device tax through 2019 in a short-term spending bill passed Jan. 8.

The medical device tax imposes a 2.3 percent sales tax on products such as pacemakers, artificial joints, surgical gloves, and dental instruments. It exempts eyeglasses, contact lenses, hearing aids, wheelchairs, and other devices the public generally buys for individual use. The tax applies to imported products, as well as those produced in the US.

Congress initially suspended the medical device tax in December 2015 for a two-year period.

The tax was created by the Affordable Care Act of 2010 and took effect in 2013.

US tax officials noted in 2013 that compliance was an issue. In the first half of 2013, collections were only 76.1 percent of projections.

Overall, the IRS collected $1.4 billion in medical device taxes in 2013 and $1.9 billion in 2014.

Need Deeper Analysis? Sign up for Market Scope's monthly newsletter to get in-depth coverage of the ophthalmic market, including quarterly procedure volumes based on survey data and meeting coverage from around the world.

Recent Ophthalmic News

China’s Innovent Plans $500 Million IPO on Hong Kong Exchange

FDA Accepts Bausch + Lomb’s NDA Filing for Loteprednol Etabonate Ophthalmic Gel

Allergan Launches Refresh Repair Lubricant Eye Drops

US Federal Trade Commission Approves Takeda’s Bid for Shire

Nikon to Acquire Ophthalmic Distributor Chuo Sangio to Merge with Optos Subsidiary

Wills Eye Hospital to Use $5 Million Gift to Support Expansion

Pixium Vision’s PRIMA Implanted in Five Patients with Atrophic Dry AMD

Iuvo BioScience Acquires Oculos Clinical Research

Alcon Will Be Worth $20 Billion to $30 Billion After Spinoff, Novartis Chairman Says

Katena Acquires Blink Medical, Adding to String of Recent Purchases

Opthea’s Phase IIb Trial for Wet AMD Candidate Reaches Midway Point for Enrollment

Ocugen Starts Phase III Trial of OCU300 for Ocular Graft Versus Host Disease

Oculocare Medical Receives US FDA 510(k) Approval for ALLEYE, an Amsler Grid App

Santen Ventures Invests $1 Million in Qura’s QSmart System

Elsalys Biotech Says New Studies Confirm Anti-CD160 Potential in Ophthalmology

Eyedaptic Presents Augmented Reality Glasses for AMD at OCTANe Summit

Quantel Medical Launches Vitra 2 Photocoagulator

Novartis Announces Plans to Spin Off Alcon

Glaukos Announces FDA Approval of iStent Inject for Lowering IOP

Aerpio Prices $45M Public Offering, Moves to Nasdaq Capital Market

Coming soon

2018 Glaucoma Device Report: A Global Market Analysis for 2017 to 2023