Device Makers Add Fees to Cover Health Tax

1/28/2013

Some medical-device companies faced with a new tax meant to help finance the health law are hoping someone else will pick up the tab: their hospital customers.

Companies including feeding-tube supplier Applied Medical Technology Inc. and respiratory-valve maker Hans Rudolph Inc. quietly added new surcharges or warned hospitals of price increases to cover the new 2.3% tax on device sales that went into effect Jan. 1, according to letters and invoices from nine manufacturers sent to hospitals that were reviewed by The Wall Street Journal.

"As a result of this law, we will be forced to charge the 2.3% federal medical device excise tax to you," said a letter to hospitals from Cardica Inc., CRDC -0.64% a maker of heart-surgery tools. A senior Cardica executive declined to comment.

Read more: http://online.wsj.com/article/SB10001424127887323854904578264170779696696.html?mod=googlenews_wsj


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