A 2.3 percent excise tax on sales of medical device makers under ObmamaCare that is projected to generate $29 billion in revenue over a ten year period to help expand insurance coverage. The tax applies to devices such as defibrillators, pacemakers, hip joint replacements, heart stents, and X-ray equipments, but excludes things sold over-the-counter directly to consumers such as hearing aids, contact lenses and eyeglasses.

The tax has generated significant opposition from medical device manufacturers as they worry the tax would stifle innovation and cost thousands of high-paying jobs. The increase of effective tax rate for medical technology companies would reduce financial resources that could otherwise be used for R&D, clinical trials and investments in manufacturing.

However, the Obama administration has opposed congressional attempts to repeal the medical device tax on the ground that the medical device excise tax is one of several designed so that industries that gain from the coverage expansion needed help offset the cost of that expansion.