FLASH: Medical device tax payments hit the $1B mark

Medtech companies have collectively paid an estimated $1 billion in compliance with the Affordable Care Act's 2.3% medical device sales tax.

The 2.3% medical device sales tax has cost the industry an estimated $1 billion so far, according to a report released by a coalition of medical device lobbying groups, which called the milestone "frightening."

The tax costs medical device makers an average of $194 million per month, funds which should be going to research & development efforts and to salaries for new employees, according to the Medical Imaging & Technology Alliance, AdvaMed and the Medical Device Manufacturers Assn.