Not-So-Happy New Year: Device Tax Not Addressed In Fiscal Cliff Law
This article was originally published in The Pink Sheet Daily
There’s no mention of a device tax delay or repeal in the measure signed by President Obama Jan. 2, and the new law contains some Medicare payment cuts as one-year “Doc Fix” pay-fors.
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The post-election, “lame-duck” Congress will face the prospect of letting massive federal spending cuts take effect and multiple tax increases kick in if it does not take action. Device firms hope to leverage the situation to repeal the looming medical device excise tax and make FDA user-fee fixes while avoiding more Medicare provider cuts.
FDA has started carrying out its end of the medical device user fee agreement, with plans to issue several new guidance documents this fall, and the agency suggests that a short-term restriction on full user fee access should not inhibit its efforts.
The use of a relatively obscure CMS fee-adjustment authority rather than competitive bidding to lower Medicare payment for diabetes testing supplies in the retail setting could be precedent setting.