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Repeal of Medical Device Tax Passes House

Press Release

Location: Washington, DC

A bill to repeal the medical device tax imposed under Obamacare passed the House yesterday afternoon on a 270-146 vote. H.R. 436, the Health Care Cost Reduction Act of 2012, was cosponsored by Rep. Justin Amash (R-MI).

The bill repeals the 2.3 percent tax levied on all medical devices, which is set to take effect in January. The bill also removes burdensome restrictions on individuals' use of certain savings accounts for health care expenses. The bill repeals the prohibition on using health savings accounts (HSAs) for over-the-counter drugs, and it blocks the "use it or lose it" rule for flexible spending accounts (FSAs) that forces users to spend on low priority items at the end of the year to avoid forfeiting their accounts' funds.

"Obamacare has not been fully implemented, and already health care costs are skyrocketing. Employers are dropping coverage, and families are bearing the burden of higher insurance rates, making quality health care more difficult to obtain," said Amash. "I am proud that a bill I cosponsored to roll back some of Obamacare's costly taxes passed the House yesterday afternoon. Reducing the government's burden on families and businesses will allow the economy to grow and increase job opportunities."

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