Update on the Medical Device Tax and Sunshine Act from the Dental Trade Alliance

Dec. 4, 2012
Here is an update on two important issues to the dental industry. The update was sent as a letter to members of the Dental Trade Alliance on December 3.

The following letter was sent to members of the Dental Trade Alliance on December 3...

Dear Colleague,

Two provisions of the health reform law that dramatically impact the dental industry will go into effect on January 1, 2013 – the medical device tax and the sunshine act. While the government has proposed rules for implementation of both of these onerous provisions, there is no final rule for either. This leaves us with many questions even as the law goes into effect.

The Department of HHS (Centers for Medicare and Medicaid Services) submitted the final rule on the sunshine act to the Office of Management and Budget on November 27, 2012. OMB is required to review every government regulation before it is published. Once submitted to OMB the law requires that the rule be published within 90 days. That’s February 25! As we learn more we will report to you.

The fate of the medical device tax is with the Congress as it debates the ‘fiscal cliff,’ taxes and program cuts. The medical device tax is on the table. The House of Representatives has voted to repeal the tax. The Senate has not taken action though in recent days some democrats in the Senate have circulated a letter supporting a delay in the implementation of the tax. It is unclear whether the House would support a delay given its strong support for repeal.

DTA continues to fight for elimination of the tax. We maintain that the tax is a bad idea for dental businesses that do not stand to benefit from increased dental health coverage under the reform law. Delaying a ‘bad idea’ doesn’t change the fact that it’s a bad idea.

We’ll keep you posted.

Gary W. Price
President & CEO
Dental Trade Alliance ~ 4350 N. Fairfax Drive, Suite 220
Arlington, VA 22203 ~ 703-379-7755 ~ www.dentaltradealliance.org

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