Medtronic, a giant Minneapolis-based medical-device manufacturer, said it expects to pay about $25 million, or about half of what it originally forecast, this year as a result of the new medical device excise tax.
The tax, which went into effect Jan. 1, requires manufacturers to pay a 2.3% excise tax on the sales of certain medical devices.
The tax has been criticized by some lawmakers and the device industry. Reps. Erik Paulsen (R-Minn.) and Ron Kind (D-Wis.) reintroduced a bill this month that would repeal the tax and say this time they have bipartisan support.
However, others say the tax is the industry's contribution to financing the healthcare reform law.