ADA Answers Members’ Pressing Questions about Medical Device Excise Tax
There are still many unanswered questions about how the medical device excise tax, which is part of the Affordable Care Act, will be applied starting Jan. 1. But based on current information obtained by the ADA there are a number of things that can be said that will help dentists and their patients navigate the quagmire.
- First, dentists will not be responsible for collecting, reporting, or paying the new 2.3 percent tax.
- Second, the tax on “devices” specific to dentistry will in many cases be applied to the materials from which dental devices are manufactured rather than to the customized items supplied by a dental laboratory, whether or not a device is ultimately adjusted and adapted by the dentist for a patient. “Device” is used as a term-of-art since many “devices” would be more commonly described as “products,” “materials,” or “substances.”
- Third, the tax will result in some increased costs for dentists and dental patients.
- Fourth, dentists should be alert in reviewing manufacturer and vendor price lists and invoices to make sure that the 2.3% tax is not being applied as a general cost increase with respect to all items, but is only being applied in cases where the law so requires.
ADA staff has written a guide on the tax and how it will affect dentists. The ADA urges members to share this link with their peers in the profession.
This email has been distributed to all members of the American Dental Association, dental leadership groups including constituent and component executive directors, presidents and president elects; Delegates and Alternates; Council, Commission and Committee members, ADA Officers and Board of Trustees, ADA Consumer Advisor spokespersons, ADA senior staff, dental editors, dental specialty organizations, certifying boards and the Association of State and Territorial Dental Directors.