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UPDATE 1-Healthcare reform to cost Medtronic $150-$200 mln
April 8, 2010 / 8:15 PM / 7 years ago

UPDATE 1-Healthcare reform to cost Medtronic $150-$200 mln

* CEO tells CNBC annual cost goes into affect in 2013

* Says added tax cost could hit R&D budget

NEW YORK, April 8 (Reuters) - A new tax included in the recently passed U.S. healthcare reform bill will cost medical device maker Medtronic Inc (MDT.N) $150 million to $200 million a year beginning in 2013, Chief Executive Bill Hawkins said in a television interview.

Hawkins told CNBC that the extra cost could have an impact on its research and development budget.

But he said the company would try to find other cost savings, noting that it has some time to plan for the added tax burden.

Earlier drafts of the bill called for the additional fees for medical device makers to go into affect this year, but the final bill delayed that until 2013.

Medtronic shares closed 10 cents higher at $44.88 on the New York Stock Exchange. (Reporting by Bill Berkrot; Editing by Richard Chang)

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