David RobinsonReporter-Albany Business Review
Pressure is again mounting to repeal a tax on medical devices after federal regulators revealed they failed to properly collect the money.
In one of those stories that keeps politicians up at night, the Internal Revenue Service on Wednesday said it had problems enforcing the tax, including tracking who actually owes the government money.
Here’s a summary from Kaiser Health News of coverage on the issue. An internal audit of the federal agency found the problems, and made recommendations on how to fix them.
Companies in New York have been among those calling for repeal of the medical device tax, which was included in the Affordable Care Act, or ACA, in 2010.
In the Albany area, medical device makers affected by the ACA’s 2.3 percent excise tax include AngioDynamics Inc., one of the region’s largest manufacturers. The company, headquartered in Latham, employs more than 900 and has spent millions of dollars related to the tax.
Joe DeVivo, president and CEO ofAngioDynamics, told the Albany Business Review that lawmakers had to awaken to potential harm that the tax could cause for business. He delivered the message two years before federal regulators said they were insufficiently prepared to enforce the law.
AngioDynamics’ portfolio includes devices that treat cancer, blood clots and other illnesses with lasers, catheters and other medical tools.
Founded 24 years ago in Queensbury, the public company (Nasdaq: ANGO) has been a key part of the region’s ongoing push to brand itself as a significant player in a range of technology fields, including biotech.
Another company that may soon be affected by the tax is Delcath Systems Inc., an early-stage medical device maker in Queensbury. That company makes a chemotherapy system sold in Europe.
Delcath has been cutting jobs and struggling financially while trying to gain approval to sell the system in the U.S. The medical device tax only applies to U.S. sales.
Robinson covers breaking news and health care.
