House Proposes Healthcare Reform Legislation; Device Fees Set at $20B
BY LAUREN UZDIENSKI, NOVEMBER 2, 2009
Confirming a report from last week, the bill levies a 2.5% tax on medical devices at the point of sale. The House estimates that the tax will raise around $20 billion over ten years, approximately half the amount the Senate version of the bill would collect in fees. However, Senate Majority Leader Harry Reid is expected to bring the bill to the floor next week with a revised fee structure in line with the House's number.
The bill creates a public insurance option which would negotiate payment rates with doctors and hospitals and is expected to cost $894 billion. President Obama has said that healthcare reform would need to cost below $900 billion to avoid increasing the deficit.
The House bill also includes a number of quality and transparency measures, including establishing an office of comparative effectiveness research within the AHRQ, requiring physician payment disclosures, which would go into a publicly searchable database, and creating a national device registry.
With the House bill now officially on the table, the next steps involve a debate and vote in both chambers. If the bills pass in both chambers, a committee will combine them into one bill, which would then go to President Obama to sign into law. The White House is still said to be targeting year-end to pass the legislation.
