Medical Device Tax

by Larry Emmott on November 12, 2012

in Management

The following comes from Chris Torregrossa, CPA who heads up the Dental Pratice Group at Price Kong and Company.

Another new Obomacare tax, the Tax on Medical Device Manufacturers that begins in 2013, places a 2.3% excise tax on all items retailing for more than $100. This provision will not only drive up the cost of various medical devices ranging from mobility assistance devices to personal testing supplies, but will also impact an industry that employs 36o,ooo people in 6,ooo plants across our country. This tax, while not a direct tax, would have significant negative impact on the middle class.

What this means to you, right now today, is that you should consider making new equipment or device purchases this year. For example one of my favorite tech products is Nomad, the hand held x-Ray machine from Aribex. If you buy it in 2012 instead of 2013 you will save some bucks.

What it might mean in the future is that the lab will be charged the 2.3% tax as a creator of a medical device which of course means higher lab fees. From what I have been reading so far the tax on dental restorations is possible but not confirmed.

What if you use E4D or CEREC and make your own crowns, are you a medical device manufactuer? Will you have to pay the excise tax?

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