One element of our argument against the medical device tax is that the Affordable Care Act contains little additional dental coverage. The Obama administration conceived the tax to counter what they claimed would be a ‘windfall’ to medical device companies because more Americans would have health insurance, therefore using more services and increasing profits for these companies. Dental companies got the tax and no windfall sales or profits!
The Physician Payment Sunshine Act (Sunshine Act) requires most companies that make, package, distribute, market or sell health care products to document and report nearly all direct and indirect financial interactions with various health care professionals (HCPs) to the federal government.
The Sunshine Act does not preempt more stringent state laws and reporting requirements (e.g., Vermont, Massachusetts) and these laws include broad definitions of HCPs, products and some include bans on meals and gifts.
The medical device excise tax on sales is equivalent to raising the corporate income tax to as much as 50 percent. Don’t be discouraged by the lack of action from Congress on major issues. Our efforts to repeal the medical device tax are still primary. So what can you do help change the Medical Device Tax regulations?
The medical device excise tax on sales is equivalent to raising the corporate income tax to as much as 50 percent. Calculate this for your business and let your U.S. Representatives and Senators know how you feel. Click here for a sample letter that you can use to reach out to your representatives and senators to let them know how you feel about this tax.
On December 5, the IRS published the final rule on the implementation of the medical device tax. You can find the full text here. You may also find additional IRS guidance which discusses specific issues including convenience kits. We have just begun reading the final rule and will provide more information soon.
June 12 2012 -- More than 100 organizations, including the Dental Trade Alliance, have signed a letter urging U.S. Department of Health and Human Services Assistant Secretary for Health Dr. Howard K. Koh to have Surgeon General Regina Benjamin release a statement acknowledging the continuing public health role of fluoridation in enhancing the oral health of all Americans.
June 12, 2012 -- Recently, the Healthcare Costs Reduction Act passed on the House of Representatives on a 270 to 146 vote. It’s doubtful that the Senate would consider the bill, which would repeal a $29 billion tax on medical device companies, during this session.
May 7, 2012 -- While the DTA continues to work for repeal of the medical device tax, the IRS is working on the details of implementation of the tax next January. IRS issued a proposed rule on the tax earlier this year. The DTA submitted formal comments on the proposal. You can view them here.
February 17, 2012 - The Centers of Medicare and Medicaid Services, part of the Department of Health and Human Services, requested comments from stakeholders about its proposed rule concerning transparency reports and reporting of physician ownership or investment interests. DTA responded.