Hogan Lovells Publications "Internal Revenue Service issues proposed rule implementing the Medical Device Tax." Health Alert, Hogan Lovells, 07 February 2012

Stuart M. Langbein, Helen R. Trilling, Beth L. Roberts, Andrew S. Furlow, Erin Estey Hertzog

On February 3, 2012, the Internal Revenue Services (IRS) issued a proposed rule implementing the medical device tax enacted in from the Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010 (collectively, the ACA).1 The law requires the imposition of an excise tax on the sale of a “taxable medical device” by the manufacturer, producer, or importer of the device equal to 2.3% of the sale price, effective for sales of the device as of January 1, 2013. The statute provides exemptions from the tax for eyeglasses, contact lenses, hearing aids, and devices determined by the Secretary to be of a type generally purchased by the public at retail for individual use.

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