A medical device tax included in the Patient Protection and Affordable Care Act to help fund its mandates is falling short of expectations.

The Treasury Inspector General for Tax Administration took a look into reports the tax wasn't working as designed and concluded the process for collecting it was flawed. The upshot: in its first year, collections fell nearly $300 million short of projections.

The tax on medical devices was set at 2.3 percent. First-year projections for revenue generation were set at $1.2 billion. Instead, the IRS collected $913.4 million.

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Dan Cook

Dan Cook is a journalist and communications consultant based in Portland, OR. During his journalism career he has been a reporter and editor for a variety of media companies, including American Lawyer Media, BusinessWeek, Newhouse Newspapers, Knight-Ridder, Time Inc., and Reuters. He specializes in health care and insurance related coverage for BenefitsPRO.