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There's a new addition to the Senate health care reform bill that could have massive consequences for dentistry: a proposed 5% tax on cosmetic surgery and procedures that has been dubbed the Botax.
While it's not entirely clear what this would include, cosmetic dentistry will probably be included.
The Senate bill doesn't define cosmetic surgery, but it seems likely it would be similar to New Jersey's tax.
In New Jersey, cosmetic procedures are subject to a 6% tax. (In effect since 2005, it's the only state with such a tax.) It defines “cosmetic medical procedures” as those that are performed to improve appearance without providing significant health benefit.
The state's Treasury website provides a specific example:
"For example, charges for teeth whitening will be taxable, while charges for breast reconstruction or for vision correction by laser treatment will not be subject to the gross receipts tax."
- New Jersey State Treasury
New Jersey has netted about $11 million annually from the tax — half of what was expected.
One of the unintended consequences of the tax? Patients heading to neighboring states for aesthetic procedures.
Senators hope the proposed national cosmetic tax could raise $5 billion annually to help pay for providing health coverage over the next decade.
I'm not comfortable with trying to distinguish "cosmetic medical procedures" from ordinary medical procedures — at least not when it comes to dentistry. Presumably porcelain veneers will be taxable and root canals won't be… but who's to say a dental implant with a beautiful dental crown won't be considered a "cosmetic" procedure?
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December 2nd, 2009 at 12:07 am
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December 2nd, 2009 at 10:42 am
There is also a provision in the proposed healthcare bill that will limit the amount allowed in flexcare accounts to $2500. That will definitely affect all cosmetic dentistry as well as ortho.
December 2nd, 2009 at 5:12 pm
Daine Archer’s comments are just too rich!! She is the director at the Institute for America’s Future? That is some combination of sad and alarming, not that this organization has any credibility anyway. She is not “sympathetic”, no she is just pathetic! I would love to follow her around for a day and note all the things she eats, drinks, wears, does, etc. that are “nice, but not necessary”.
December 3rd, 2009 at 1:05 am
New York State already imposes a tax on “cosmetic” dental lab services, ie porcelain veneers. Is it fair to consider porcelain veneers solely a cosmetic procedure when it can truly be the best restorative treatment for a fractured tooth? Taxing this as a cosmetic, in essence vanity, procedure is unfair as well as wrong! The government is taking a similar stand on such procedures as the dental insurance industry…once again the patients are the losers!
December 5th, 2009 at 4:21 pm
There is no limit on how far taxes or the appetite for more control will go. Unless there is a return to our constitution and more limited government(see Ron Paul) , this is only the beginning. It will grown like a cancer until it kills the patient.
January 8th, 2010 at 5:07 pm
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January 8th, 2010 at 5:08 pm
I really loved this amazing article. Please keep it up. Greets!.
January 8th, 2010 at 9:11 pm
Sagt mal, was ich schon immer mal wissen wollte: Heißt es der Blog oder das Blog? Ich bin echt *verwirrt*! Helft mir. LG