Tags: fda | smartphones | tax | medical

GOP Congressmen Worry Smart Phones May Be Taxed Under Obamacare

Monday, 04 Mar 2013 03:19 PM

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Six Republicans on the House Energy and Commerce Committee have sent a letter to the Food and Drug Administration (FDA) to find out if smartphones, tablets, and apps will be subject to taxation as medical devices under the Affordable Care Act.

Obamacare includes an excise tax on medical devices.

If that was applied to apps and smartphones, it could "affect the growth and innovation in this market," the six, led by committee chairman Fred Upton, wrote.

"Has the FDA discussed, prepared, or analyzed the effect of the medical device tax on smartphones (as well as tablets or similar devices) or the creators or distributors of applications for those products?" the legislators asked in their letter.

The letter says the FDA's draft proposal to regulate mobile medical devices would involve only devices explicitly marketed for medical uses. So smartphones used to run medical apps wouldn’t be classified as a medical device.

But, "we are concerned about the potential of 'actual use' becoming a factor in the future," the congressmen wrote.


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