Medical-devices companies could be asked to contribute $4 billion per year to help cover the tab for U.S. health-care reform, according to a proposal by Senate Finance Committee Chairman Max Baucus.

The medical-devices sector, where heavyweights include Medtronic Inc. (MDT), Johnson & Johnson (JNJ) and Boston Scientific Corp. (BSX), made clear through its lobbying group on Tuesday that it is firmly against this move.

A "framework" for discussion on health reform from Baucus, a Montana Democrat, includes the annual total $4 billion fee on device manufacturers allocated by market share starting in 2010. While only a proposal, it suggests device makers aren't off the radar screen during the reform push.

"To the best of our knowledge, this is the first time such a medtech deal has been publicly disclosed in writing by a key government official," Wells Fargo analyst Larry Biegelsen said in a note to investors Tuesday.

The industry doesn't seem interested in a deal, however. The Advanced Medical Technology Association, which represents device makers in Washington, responded harshly to the Baucus proposal, which would carry a $40 billion price tag over 10 years. AdvaMed said it will "vigorously oppose" the move.

Seeking concessions from the devices sector could rattle investors who thought device companies might skate through reform talks without making concessions in the mold of pharmaceutical companies and hospitals. Analysts said this potential device-sector contribution doesn't match some higher numbers that circulated in July, but the figure is still steep enough to outweigh benefits from treating currently uninsured patients.

Other big device makers include Abbott Laboratories (ABT) and Stryker Corp. (SYK). Stocks in this sector were mixed on Tuesday, with two Dow Jones Wilshire indexes edging lower despite an uptick for the broader market.

How device companies might contribute to reform efforts remains to be seen because there isn't a strong direct connection between the industry and government. Instead, device companies are generally paid by hospitals, which often recoup costs for devices through Medicare reimbursement payments tied to patient treatment.

The device industry has highlighted the fact that it is already likely to get squeezed in the quest for cost savings when the government clamps down on hospitals.

Stephen J. Ubl, AdvaMed's president and chief executive, noted this again in a statement Tuesday. He also said the devices industry "will vigorously oppose the proposed $40 billion tax on medical devices and diagnostics that is included in the draft reform proposal" from Baucus.

Ubl said there are better ways to reform the system, and he noted the industry has supported measures such as comparative-effectiveness research, value-based purchasing, preventative health and better care coordination.

"While AdvaMed supports broad-based health-care reform and has been working to achieve that important goal, we cannot support a proposal that unfairly singles out the medical technology industry for a tax on innovation on top of the billions [of dollars] in cuts that the industry would already have to absorb within the health-care reform proposal," Ubl said.

-By Jon Kamp, Dow Jones Newswires; 617-654-6728; jon.kamp@dowjones.com