Great News! Hearing Aids Exempted from the Device Tax!

We received word late today that hearing aids were SPECIFICALLY exempted from the proposed device tax language, which reinforces the Class I exemption which also remains intact even though a very serious effort was made to remove it to broaden the device tax base. Of course, we all know it's not over 'til it's over - but it's looking very good tonight.

Thanks to those of you who made calls or sent emails to your representatives in Congress. They heard us!

Please do remember to send out a quick note of thanks to your representative.

Thank you for taking the time to make a difference!


Here's the language as we know it now:

18 ‘‘Subchapter E—Medical Devices

‘‘Sec. 4191. Medical devices.

19 ‘‘SEC. 4191. MEDICAL DEVICES.
20 ‘‘(a) IN GENERAL.—There is hereby imposed on the
21 sale of any taxable medical device by the manufacturer,
22 producer, or importer a tax equal to 2.9 percent of the
23 price for which so sold.

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1 ‘‘(b) TAXABLE MEDICAL DEVICE.—For purposes of
2 this section—

3 ‘‘(1) IN GENERAL.—The term ‘taxable medical
4 device’ means any device (as defined in section
5 201(h) of the Federal Food, Drug, and Cosmetic
6 Act) intended for humans.

7 ‘‘(2) EXEMPTIONS.—Such term shall not in
8 clude—
9 ‘‘(A) devices classified in class I under sec
10 tion 513 of such Act,
11 ‘‘(B) eyeglasses,
12 ‘‘(C) contact lenses,
13 ‘‘(D) hearing aids, and
14 ‘‘(E) any other medical device determined
15 by the Secretary to be of a type which is gen
16 erally purchased by the general public at retail
17 for individual use.’’, and
18 (2) by inserting after the item relating to sub
19 chapter D in the table of subchapters for such chap
20 ter the following new item:

‘‘SUBCHAPTER E. MEDICAL DEVICES.’’.
21 (b) CERTAIN EXEMPTIONS NOT TO APPLY.—
22 (1) Section 4221(a) of the Internal Revenue
23 Code of 1986 is amended by adding at the end the
24 following new sentence: ‘‘In the case of the tax im-

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1 posed by section 4191, paragraphs (3), (4), (5), and
2 (6) shall not apply.’’.
3 (2) Section 6416(b)(2) of such Code is amend
4 ed by adding at the end the following: ‘‘In the case
5 of the tax imposed by section 4191, subparagraphs
6 (B), (C), (D), and (E) shall not apply.’’.
7 (c) EFFECTIVE DATE.—The amendments made by
8 this section shall apply to sales after December 31, 2012.
9 (d) REPEAL OF SECTION 9009 OF THE PATIENT
10 PROTECTION AND AFFORDABLE CARE ACT.—Section
11 9009 of the Patient Protection and Affordable Care Act,
12 as amended by section 10904 of such Act, is repealed ef
13 fective as of the date of enactment of that Act
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