Dear Colleague:

The DTA needs your help! We need you to contact your members of Congress to help in our efforts to reverse or mitigate the effect of the medical device tax on dental products and equipment.

Last fall, during the debate over health care system reform, the DTA Board of Directors took an important step on your behalf. We retained the services of a Washington representative to guide and advise us. After passage of the federal act, we established a Governmental Relations Committee to study the new law and to recommend a strategy for DTA in the coming months. This Committee has met six times, reviewing all relevant information regarding the new health law and its implications for the dental industry.

The Board of Directors endorsed the Committee's recommendation that the DTA seek relief from the tax by appealing to Congress to modify the law. The preference would be elimination of the tax, but we recognize that modification of the tax may be the practical goal.

The Committee recommended that DTA members actively participate in this appeal to Congress by writing letters, making phone calls and visiting with your elected representatives. The committee asks all DTA members to participate but will concentrate special efforts on DTA members who have operations or live in states or congressional districts where representatives have seats on key health decision committees. Those of you in these key districts will receive phone calls from us asking that you help by writing letters and making personal contact with your representatives in Congress.

The new health system reform law creates a new excise tax on the manufacture and sale of most professional dental products that would far exceed any additional revenue or profit generated by provisions in the law to increase access to dental care. Our estimate is that the tax would be up to 70 times the potential benefit to the industry. (This Discussion Paper explains the disproportionate effect on the dental industry. This Discussion Paper is for your information and should not be included with your letter).

The law contains provisions for a tax of 2.3% on the sale of Class I, II, and III dental devices (the vast majority of dental products sold) by the manufacturer, producer, or importer. The tax applies to the price for which the device is sold by the manufacturer, producer or importer. Although some or all of this tax may be passed through to the consumer, the Committee felt that it is important to oppose the tax because 1) the potential to expand the use of the taxing mechanism in the future is likely (including increasing the tax rate), 2) any increase in the cost of dental care may negatively influence patient decisions to seek oral healthcare services, and 3) the tax is disproportionate to any increase in revenue by the industry and thus would cause the dental industry to subsidize markets for devices serving the medical market.

The law contains provisions to increase the amount of dental care provided under the Medicaid program and provides that any health insurance plan sold under the state health insurance exchange program include pediatric dental care. Exchange plans are intended as a safety net for small businesses and individuals that cannot afford health insurance. While the potential additional care provided under Medicaid can be projected, it is difficult to project how many individuals will participate in the exchange plans and whether this represents ‘new’ dental care or covers dental care already being provided through other means.

We have provided a sample letter for your consideration. We hope that you will personalize this letter and send it to your elected representatives. If you need assistance with congressional contact information please do not hesitate to call us. (You can find your U.S. Representative and their address at http://www.house.gov/house/MemberWWW_by_State.shtml. Look here for the name and address of your Senator - http://www.senate.gov/general/contact_information/senators_cfm.cfm). We've also created a list of House Representatives, indicating which DTA Members are in their districts.

Thank you in advance for your help in this effort. We believe that if we all work together we can have a positive impact by reducing or eliminating the burden of this new tax on our industry.

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Related Links:

Letter to DTA Members

Discussion Paper

Sample Letters to Congress

House of Representatives List