Cancer Patients to Pay Lower Tax Rate for Life-Saving Medical Devices through Breen Bill Signed into Law on Friday

With the Friday signing of State Representative Peter Breen’s (R-Lombard) SB 3047 by the Governor, innovative and life-saving cancer treatments will now be taxed at the same rate as prescription drugs and most other medical devices.

Under the new law sponsored by Breen in the House and Senator Chris Nybo (R-Elmhurst) in the Senate, cancer treatment items that were previously taxed at the normal consumer product tax rate will now be taxed at only 1%, like prescription drugs and other medical devices. Specifically the law lowers the taxes on cancer treatment devices classified by the Federal Drug Administration as Class III medical devices.

“SB 3047 corrects a loophole in the law that had cancer patients paying too much in taxes for the equipment they need to battle their disease,” said Breen. “The provisions took effect immediately upon the bill’s signing, so that those involved in cancer treatment can experience immediate relief in the tax rate applied to the medical devices.”

According to Breen, Class III medical devices had been taxed at a rate of 6.25% like most other consumer goods, but with the change in statute, the cost of obtaining the equipment will be considerably lowered. “These medical devices have been recommended for use by cancer patients’ physicians as part of their treatment plan, and it made no sense that they were being taxed at a rate that was more than five times higher than other physician-prescribed items,” said Breen.

Click here to here more from Breen on this legislation.