Vote Smart's Synopsis:

Vote pass a bill that repeals the excise tax on medical devices.

Highlights:

• Repeals the 2.3 percent tax on medical devices previously imposed on manufactures, producers and importers (Sec. 2).

• Repeals the limitation on reimbursing expenses for over-the-counter drugs that is under the following accounts or arrangements, effective for expenses incurred after December 31, 2012 (Sec. 3):
• Health Savings Accounts;
• Archer Medical Savings Accounts;
• Health Flexible Spending Arrangements; and
• Health Reimbursement Arrangements.

• Requires qualified distributions from a flexible health spending arrangement to be included as wages or compensation that are part of an employee’s gross taxable income in the taxable year in which distributed, effective for plan years beginning after December 31, 2012 (Sec. 4).

• Defines “qualified distributions” as an amount that does not exceed the lesser of the following (Sec. 4):
• $500; or
• The excess of the salary reduction contributions divided by the reimbursements for the expenses incurred for medical care in a particular plan year.

• Repeals the limit on taxes for families with incomes less than 400 percent of the federal poverty line that are levied against advance payments of the health care tax credit that exceed the maximum allowable amount of the credit, effective for taxable years ending after December 31, 2012  (Sec. 5).

Full Bill Text

Full Bill Text