House Votes to Repeal Medical Device Excise Tax, Prosthetic Coverage Restored in Hawaii Medicaid

House Passes Medical Device Excise Tax Repeal  The United States House of Representatives voted last week to repeal the Medical Device Excise Tax by a 270-146 margin, with 37 Democrats joining all house Republicans in supporting repeal. A key component of the Affordable Care Act, the medical device excise tax is slated to raise $29 billion over 10 years by taxing class I, II and III medical devices a tax of 2.3%, so the controversial part of the legislation is how to pay for the lack of new revenue that was to be generated.  AOPA and other national groups have been very active meeting with officials at the Internal Revenue Service to ensure orthotic and prosthetic patient facilities are exempt under what is called the, “retail exemption”, meaning any device typically sold at retail (IE, eye glasses, hearing aids, etc).  The repeal of the bill would automatically take the tax off the table for orthotic and prosthetic manufacturers, but the pay-for is not likely to make much headway in the Democratically controlled Senate.  The bill is likely to have the same fate as many other Affordable Care Act repeal measures passed by the house, and will likely not get a vote; the White House has also threatened to veto the legislation if it were to pass the Senate. MORE

Hawaii Medicaid Restores Prosthetic Coverage — The Hawaii Department of Human Services announced last week that they will abandon a plan announced earlier this year proposing to limit outpatient rehabilitation, prosthetics and optometry services for adults age 65 and younger.  The initial policy was created to save nearly $75 million, but additional Medicaid matching funds, recovering tax revenues and additional funds appropriated by the state legislature helped restore the much-needed services, including prothetics and durable medical equipment. MORE (O&P Business News)

This entry was posted in Manufacturer, Orthotics and Prosthetics, Prosthetist and tagged , , . Bookmark the permalink.

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