The U.S. House of Representatives has proposed a two-year suspension of the medical device tax and another two-year delay of the Cadillac tax on high-cost employer health plans.
The 2.3 percent tax to be levied on medical device manufacturers and importers was a provision of the Affordable Care Act that was projected to raise $29 billion over 10 years.
Opponents have said the tax would only be passed on from the medical device companies to hospitals.
The Cadillac tax was scheduled to take effect in 2018, when the government was to have imposed heavy financial penalties on employer-provided health plans it deemed overly generous. The plans would be taxed on the amount surpassing an annual limit.
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The tax was designed to rein in healthcare inflation and raise as much as $60 billion by 2023, according to the Congressional Research Service. It was opposed by many healthcare companies, business groups and the U.S. Chamber of Commerce.
Representatives reached an agreement on the tax package before midnight Tuesday, and on the $1.1 trillion omnibus spending bill early Wednesday morning.
The spending bill includes a major concession to Democrats in the continued federal funding of Planned Parenthood.
Due to deadline restrictions, a House vote may be delayed until Friday.
House lawmakers will need to pass a stopgap funding measure today to avoid a government shut-down, The Hill said.
Twitter: @SusanJMorse