Here come the massive array of new Obama regulations...

[Palehorse]

You might want to read the article and some of the material linked to within the article before you go trying to make it look like no big deal.  It has little to do with where it's made once it gets here.


snopes.com    
Search    
   

Medical Device Excise Tax
Claim:   Health care legislation imposes a 2.3% excise tax on the sale of medical devices as of 1 January 2013.

   TRUE

Example: [Collected on Facebook, January 2013]

OK.... Here comes some of those Obama care taxes on Jan 1, 2013. Soon every purchase you make, there will more taxes. On 103.98 I was charged 8.58 for Texas state taxes. And then Obama care medical tax another 2.39. So the more you spend , the more goes to the "so called free Obama care".



Let the ObamaCare fun begin! Clothing now counts as being taxed under the ObamaCare because it "alters the function of the body" See blurb below. I wish more companies would have the balls to do it the way Cabella's is, but most will bury it the cost of the product.

The new law provides that any device defined in §201(h) of the Federal Food, Drug, & Cosmetic Act (FFDCA) that is intended for humans will be taxable. The FFDCA is written very broadly to include instruments, machines, implants and in vitro reagents, among others. §201(h) also includes associated parts and accessories, which are (1) recognized in the official National Formulary, or the United States Pharmacopeia, or any supplement to them; (2) intended for use in the diagnosis, cure, treatment or prevention of disease or other conditions, or (3) intended to affect the structure or any function of the body,excluding products relying on a chemical reaction within or on the body or being metabolized to achieve their primary intended purposes.

Included is a copy of a Cabela's receipt that charges a Medical Excise Tax of $11.97. This is what the guy said he bought:

3 pair of hiker socks
2 safe door pocket organizers
1 pair female boots
1 female jacket
1 female workout pant
1 Lyman sonic brass cleaner

The receipt total was $520.82. 2.3% of that is
................................ drum roll please
.......................................... $11.97.



Origins:   One of the provisions in the reconciliation bill (HR 4872) passed in conjunction with the Patient Protection Affordable Care Act (PPACA) health care legislation, also known as "Obamacare," institutes a 2.3% tax on the first sale of medical devices as of 1 January 2013. (Technically the medical device tax is an excise tax which applies only to manufacturers, producers, or importers and is not to be paid directly by consumers, but the costs of such taxes are typically passed along to consumers through higher prices.)

The text of the legislation states that the roster of "taxable medical devices" does not include "eyeglasses, contact lenses, hearing aids, and any other medical device determined to be of a type that is generally purchased by the general public at retail for individual use."

Anticipating what constitutes a "taxable medical device" under this legislation can be rather confusing, as explained in a July 2012 tax adviser article:
Under Sec. 4191(b)(1), a taxable medical device is a device, as defined in Section 201(h) of the Federal Food, Drug, and Cosmetic Act (FFDCA) (21 U.S.C. §321(h)), that is intended for humans. The latter provision defines "device" as an "instrument, apparatus, implement, machine, contrivance, implant, in vitro reagent, or other similar or related article" — including "any component, part, or accessory" — that meets certain requirements. The device must be:

(1) Recognized in the official National Formulary, or the United States Pharmacopeia, or any supplement to them;
(2) Intended for use in the diagnosis of disease or other conditions, or in the cure, mitigation, treatment, or prevention of disease in man or other animals; or
(3) Intended to affect the structure or any function of the body of man or other animals.

The device must also "not achieve its primary intended purposes through chemical action within or on the body of man or other animals" and not depend "upon being metabolized for the achievement of its primary intended purposes." Sec. 4191(b)(1) limits the definition for purposes of the tax to devices intended for humans.

Under what is commonly called the "retail exemption," the tax provision does not apply to eyeglasses, contact lenses, hearing aids, and any other medical device determined by Treasury to be of a type that is commonly purchased by the general public at retail for individual use.

As stated in the Joint Committee on Taxation's Technical Explanation of the Revenue Provisions of the "Reconciliation Act of 2010," as Amended, in Combination With the "Patient Protection and Affordable Care Act" (JCX-18-10), p. 138 (March 21, 2010), Treasury may determine that a specific medical device is exempt if the device generally is sold at retail establishments (including over the internet) to individuals for their personal use.

The exemption is not limited by device class as defined in Section 513 of the FFDCA (21 U.S.C. §360c). For example, items purchased by the general public at retail for individual use could include Class I items, such as certain bandages and tipped applicators; Class II items, such as certain pregnancy test kits and diabetes testing supplies; and Class III items, such as certain denture adhesives and snakebite kits. Such items would be exempt only if they generally are designed and sold for individual use. In this regard, Congress anticipated that Treasury will publish a list of medical device classifications that are of a type commonly purchased by the general public at retail for individual use.
According to proposed regulations issued by the Internal Revenue Service in February 2012, the medical items which would be exempt from the tax because they are "commonly purchased by the general public at retail for individual use" should be determined as:
A device will be considered to be of a type generally purchased by the general public at retail for individual use if it is regularly available for purchase and use by individual consumers who are not medical professionals, and if the design of the device demonstrates that it is not primarily intended for use in a medical institution or office or by a medical professional.

The following factors suggest that a device is of a type that is regularly available for purchase and use by individual consumers who are not medical professionals:

(A) Consumers who are not medical professionals can purchase the device through retail businesses that also sell items other than medical devices, such as drug stores, supermarkets, and similar vendors.
(B) Consumers who are not medical professionals can use the device safely and effectively for its intended medical purpose with minimal or no training from a medical professional.
(C) The device is classified by the FDA under Subpart D of 21 CFR Part 890 (Physical Medicine Devices).
Why the medical device excise tax should have been applied to all the items listed in the receipts pictured above is something of a mystery. The state of Texas (where these
receipts are said to have originated) allows sellers to pass along the expense of the new medical device excise tax to customers by "separately stating a line item charge on the invoice or receipt given to their customers for 'Federal Excise Tax' or something similar," but the vendor, Cabela's, is a retailer of hunting, fishing, camping and related outdoor recreation merchandise not known for selling medical devices, and the items listed in the receipts (such as a Ruger Attache Pistol Case) would not seem by any stretch of the imagination to fit FDA definitions of medical devices. It's possible that some vendors switched over to new sales software on 1 January 2013 that was programmed to accommodate the new tax but improperly applied it to all purchases rather than just those of qualifying medical devices.

(Some Cabela's customers have since told us that they were informed the chain's cash registers did indeed manifest a glitch starting on 1 January 2013 that improperly imposed the medical device excise tax surcharge on non-qualifying merchandise and were advised to contact Cabela's customer service department and request refunds for the overcharges.)

Last updated:   2 January 2013

Urban Legends Reference Pages © 1995-2013 by Barbara and David P. Mikkelson.
This material may not be reproduced without permission.
snopes and the snopes.com logo are registered service marks of snopes.com.

   


Sharing Successful!
Share again!

You've successfully shared using Po.st!
Welcome to po.st!
Powered by Po.stPrivacy
Read more at http://www.snopes.com/politics/taxes/medicaldevice.asp#U9BrLhee1hikQuEw.99

Was I talking to you? Wow. . .

[Locutus]

http://www.boston.com/news/local/massachusetts/2013/01/02/new-tax-medical-device-firms-takes-effect/lNbZ7AS4Ds1kVGVDzKoAHN/story.html

http://www.wcvb.com/health/New-medical-device-tax-takes-effect/-/9848730/17984062/-/rh1i46/-/index.html

http://www.news10.com/story/20485306/new-tax-on-medical-device-firms-takes-effect

http://www.blackenterprise.com/money/5-tax-changes-that-take-effect-in-2013/

Either read or don't the choice is yours but this is as far as I go with it.  Oh, PH I did the research, what I posted is true and, like I said, I get shit anyway soooo, as I stated before, I will not go to any lengths to do it ever again.

As Exterminator said before, so what?

There is a 2.3% excise tax going on medical devices.  <-----  So what?

Did you miss this in your very own article?

"But proponents of the tax say the industry will benefit from the increased number of Americans who will have access to health insurance under the new law."

[Palehorse]

snopes.com: Medical Device Excise Tax
www.snopes.com
Health care legislation imposes a 2.3% excise tax on the sale of medical devices as of 1 January 2013?

And yet you say nothing about the premium increases of 30% or higher that are imposed almost nationwide by carriers?

That or forced purchase of high deductible plans by employers, which more than double the annual cost for healthcare insurance for zero benefit.

[me]

That's how the world works.  The more restrictions and regulations there are the harder and more expensive it is to do business and the more it costs them the more it costs the consumer.   Vicious cycle any way you look at it. 

[Bo D]

No, that was not my intent and you damn well know it so stop with the stupid shit and stick to the intent which was proving a point about all the new regulations which are now coming into effect.  Ya'll are truly blind.

You talk about stupid? How stupid is it to post an article about a medical excise tax being MISTAKENLY charged on a Ruger pistol case?

The only point you proved is how stupid the shit you post really is.

[followsthewolf]

You see, Olias, how useless it is to carry on a dialogue.

Like trying to hold onto a hagfish.

Only the  hagfish has more intelligence.

[Henry Hawk]

Here is the bottom line to this thread....


The Avalanche Of New Obamacare Rules Will Come In January, 2013


Changes are coming........and my opinion is the more Washington is involved in our daily affairs, it is usually NOT a good thing.

[me]

You talk about stupid? How stupid is it to post an article about a medical excise tax being MISTAKENLY charged on a Ruger pistol case?

The only point you proved is how stupid the shit you post really is.

Not stupid at all when it contains fact also which was the main intent of the posting not for the mistaken charge other than to show the problems arising from the new regulation/charge and how confusing it is.  Either accept it or don't I could care less. 

[me]

Here is the bottom line to this thread....


The Avalanche Of New Obamacare Rules Will Come In January, 2013


Changes are coming........and my opinion is the more Washington is involved in our daily affairs, it is usually NOT a good thing.

HH we can post 'til we're blue in the face and they aren't going to accept it or believe it until it impacts them and then they're gonna figure out a way to blame the conservatives rather than admit they were wrong or accept what we've been trying to tell them all along. 

[Exterminator]

HH we can post 'til we're blue in the face and they aren't going to accept it or believe it...

Because you have no idea what you're talking about.

...until it impacts them and then they're gonna figure out a way to blame the conservatives rather than admit they were wrong or accept what we've been trying to tell them all along.

Yes, we've all heard your doom and gloom predictions before and none of them have ever been accurate.

[The Troll]

Because you have no idea what you're talking about.

Yes, we've all heard your doom and gloom predictions before and none of them have ever been accurate.

  Yep, all of the doom an gloom predictions on Obama.  They, "ME" and the Hawker seem to forget that all of these laws have to go through the Tea Party stacked House of Representives.   

  We haven't seen the worse coming over the nation debt and a government shut down.     These damn Republicans are fixing to shut it down.    The Turd Republicans will actually tear this country down to get their way and protect the super rich and corporations.   

  The war on the middle class, poor, sick people is far from being over.  JUST WATCH And SEE WHAT THE REPUBLICANS ARE WILLING TO DO. 

[Henry Hawk]

  Yep, all of the doom an gloom predictions on Obama.  They, "ME" and the Hawker seem to forget that all of these laws have to go through the Tea Party stacked House of Representives.   

  We haven't seen the worse coming over the nation debt and a government shut down.     These damn Republicans are fixing to shut it down.    The Turd Republicans will actually tear this country down to get their way and protect the super rich and corporations.   

  The war on the middle class, poor, sick people is far from being over.  JUST WATCH And SEE WHAT THE REPUBLICANS ARE WILLING TO DO. 

You are just all ate up dude!  and are so blinded by propaganda, it is so very, very pathetic.  Obama has gotten everything he wants....his HC plan...and his tax hikes .......if we fail.......it is HIM to blame.  Quit trying to cover his ass now by blaming republicans.

Can YOU ever be accountable for your own actions?

[The Troll]

You are just all ate up dude!  and are so blinded by propaganda, it is so very, very pathetic.  Obama has gotten everything he wants....his HC plan...and his tax hikes .......if we fail.......it is HIM to blame.  Quit trying to cover his ass now by blaming republicans.

Can YOU ever be accountable for your own actions?

  You wait and see, get out your well used Crack Pipe.  Just wait, you haven't seen just how stupid your brain dead GOP has become. 

[Palehorse]

. . .Obama has gotten everything he wants....his HC plan...and his tax hikes .......if we fail.......it is HIM to blame.  Quit trying to cover his ass now by blaming republicans.

. . .

I'd almost be willing to 1/4 agree with you on this except for the saber rattling the Tea Billies are doing, saying there will be "consequences". . .

To me that means more filibustering, more bull-shite, and oh, big surprise here, more "NO". (Just like they did to the people in the midwest and east coast over disaster relief). 

If that continues then come 2014 there will indeed be consequences. . . for the republican controlled house!