Dems, GOP near deal on delaying medical device tax

Republicans and Democrats in Congress are reportedly close to striking a deal to delay the medical device tax enacted as part of Obamacare, but face opposition from the White House.

The delay, which would also hit pause on the so-called “Cadillac tax” on high-benefit health plans, is part of a major tax package being negotiated by legislators, The Hill reported.

In return, President Barack Obama’s administration wants to fix the “risk corridors” in the Affordable Care Act, which is designed to help insurance companies that participate in government-run health exchanges, the website reported. At least 1 insurance giant, UnitedHealth Group, is threatening to withdraw from the exchanges, calling its participation “a bad decision.” But Republicans are dead set against reviving the risk corridor program, calling it a sop to the health insurance industry.

Repealing the medical device tax, a 2.3% levy on all U.S. sales of medical devices, has support from both sides of the aisle and could be included in a fail-safe bill from Rep. Kevin Brady (R-Texas), chairman of the House Ways & Means Committee. Brady’s measure is designed to be a fallback in case an agreement on the tax package can’t be reached.

“Clearly, we’re moving forward with the two-year extension and considering adding a medical device and a Cadillac tax pause on there,” Brady said, according to the website.

Material from Reuters was used in this report.

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