This week, HIGPA submitted comments to the IRS regarding the medical device tax in a letter also signed by the Federation of American Hospitals, the American Hospital Association, and the Catholic Health Association of the United States.
The letter commented on the nature of the Affordable Care Act (ACA), and the concern that in its current state, the act could enable device companies to pass the medical device tax on to their customers, including hospitals. The letter states:
“As the ACA appears to permit device companies to deduct the tax from their income for federal tax purposes, to allow device companies also to pass through the tax to their customers would permit a financial ‘double-dip’ that could leave device companies in a better financial position than before the ACA was enacted.”
The letter asks the IRS to prohibit device manufacturers from passing this tax through to customers, and also encourages the IRS to take “a flexible and frequently updated approach to the retail exemption.”
A tax passed through to hospitals is a tax that will affect the affordable and quality care of patients; HIGPA joins our hospital partners in asking the IRS to prevent this from happening.
To read the full letter, click here.
To read today's article in DOTmed News regarding the letter, click here.
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