Don’t know if all of you saw this or not, but it is big. Starting in January 2013, all dental equipment will be hit with a 2.3% additional device tax….Ouch!
The current edition of Bloomberg BusinessWeek has an excellent analysis of the state of the medical device tax, the 2.3% excise tax that’s an integral funding piece of the Affordable Healthcare Act.
The new tax, slated to begin in January 2013, is forecast to raise $20B over the next decade to help pay the price of insuring the currently uninsured. The medical device industry is fighting the new tax, but the current thinking is that the tax will not be repealed. At this point, it looks like dental equipment will be classified as ‘medical devices,’ and therefore subject to the new tax, but our trade association is lobbying to exempt dental equipment.
Bottom line: while the entire issue is up in the air, the most likely outcome is that the tax will survive intact, and that dental equipment will be included.