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Manufacturers of low-end retail medical devices will get a break on industry-wide fees, in the latest version of Senate health-care overhaul legislation unveiled Tuesday by Senate Finance Committee Chairman Max Baucus, D-Mont.

Baucus has proposed taxes on medical-device manufacturers of $4 billion annually, apportioned by market share, to help pay for expanded health-insurance coverage and other parts of the legislation.

But certain devices sold at retail for less than $100 - including hearing aids, tampons, contact lenses, and glucose and blood-pressure monitors - wouldn't be counted in calculating the tax, according to the revised version of Baucus' proposal.

That carve-out stands to lessen the burden of the tax on companies including CVS Caremark Corp. (CVS), Wal-Mart Stores Inc., (WMT), Johnson and Johnson (JNJ), and Medco Health Solutions Inc. (MHS).

The initial version of Baucus' health-care plan, unveiled last week, already exempted from the tax Class I medical devices including tongue depressors, bedpans, and hand-held surgical and dental instruments.

The change announced by Baucus on Tuesday also carves out Class II medical devices sold at retail for up to $100 per unit.

The industry fees are part of a package intended to keep the bill from adding to the U.S. budget deficit. Similar fees will also apply to health insurers and pharmaceutical manufacturers.

The Finance Committee kicked off formal consideration of the Baucus bill Tuesday, with a committee vote possible by the end of the week.

-By Martin Vaughan, Dow Jones Newswires; 202-862-9244; martin.vaughan@dowjones.com

(Alicia Mundy of The Wall Street Journal contributed to this article.)