News Item

Device Tax Repeal Momentum Boosts Insurers, Worries Hospitals

Growing bipartisan interest in repealing the ACA’s medical device tax as part of budget discussions has raised the hopes of insurers and some small business advocates that lawmakers might also delay or repeal the health law’s insurance tax, while hospital lobbyists fear a device tax repeal could lead to more hospital cuts, leading health care officials tell Inside Health Policy.

While advocates of repealing the insurance tax hope the device tax discussions will bolster their position, hospitals worry that a repeal of the device tax could lead to further hospital cuts to pay for the repeal that one American Hospital Association official said is the device industry’s responsibility.