Taxes on Cosmetic Surgery Patients
By Dr. Sutton Graham on November 23, 2009
Notes from a recent plastic surgery press release:
PLASTIC SURGEONS RESPOND TO PROPOSED COSMETIC SURGERY TAX
SURPRISE ADDITION TO HEALTHCARE BILL IS ARBITRARY, DIFFICULT TO ADMINISTER
Arlington Heights, IL and New York, NY: Late yesterday, democratic leaders in the Senate unveiled their proposal for overhauling the health care system, which included a new 5% tax on elective cosmetic procedures. Senate Democrats argue that the tax, which was a surprise addition to the sweeping 2,074-page bill, will generate $5.8 billion over the next 10 years to be put towards the bills estimated $849 billion price tag. However, the American Society of Plastic Surgeons (ASPS) and the American Society for Aesthetic Plastic Surgery (ASAPS) oppose this tax as discriminatory, arbitrary and ineffective.
Elective surgery taxes discriminate against women, given that 86 percent of cosmetic surgery patients are female, of which 91 percent are between the working ages of 19-64, said Dr. Michael McGuire, ASPS President. Moreover, contrary to popular belief, cosmetic surgery is no longer an exclusive luxury afforded by the very wealthy, but rather a mainstream and reasonable option most common amongst the working middle-class.
"This tax is effectively a Soccer Mom tax that will adversely impact mainstream American wives and mothers, who are the majority of plastic surgery patients," said Renato Saltz, MD, President of the American Society for Aesthetic Plastic Surgery (ASAPS). As doctors, we understand and appreciate the need for health care reform, but taxing physicians and cosmetic surgery procedures to pay for the reform is not realistic or beneficial,"
In a 2005 ASPS survey of people planning to have cosmetic surgery within the next two years, 60% of respondents reported an annual household income of $30,000-$90,000 a year. Most importantly, 40% of those reported a household income of only $30,000-$60,000. Only 10% of respondents reported a household income of over $90,000, which clearly refutes the suggestion that elective surgery taxes are luxury or sin taxes affecting a privileged few.
The ASAPS and ASPS also contend that such taxes have been proven arbitrary and difficult to administer as evidence by the experience in New Jersey, the only state to have imposed a cosmetic tax. Since it passed a 6% tax on elective medical procedures in 2004, the NJ Department of Taxation has experienced a 59% shortfall based on projected revenue estimates. Eight other states have considered similar tax legislation and they all wisely rejected them.
Finally, though the bill claims that the only procedures that would be taxed are those that are not necessary to ameliorate a deformity arising from, or directly related to, a congenital abnormality, a personal injury resulting from an accident or trauma, or a disfiguring disease, The Plastic Surgery Societies contend that such distinctions arent always obvious. Because the line between cosmetic and reconstructive surgery is not always clear, such a tax would leave the determination of medical necessity up to state tax auditors a completely inappropriate proposition.
As doctors our first concern always needs to be patient safety, said Dr. Saltz, for those patients here in this country, as well as those patients who may now be encouraged by this tax to obtain their procedures abroad.
The ASPS has, and continues to oppose all taxes on physicians, in any and all forms, due to their deleterious effects of health care costs and access to patient care, said Dr. McGuire. Medical care should not be used as a tool to fix broken finances.
The American Society of Plastic Surgeons represents more than 7,000 physician members and is recognized as a leading authority and information source on cosmetic and reconstructive plastic surgery. ASPS comprises more than 94 percent of all board-certified plastic surgeons in the United States. Founded in 1931, the Society represents physicians certified by The American Board of Plastic Surgery or The Royal College of Physicians and Surgeons of Canada.
The 2400-member American Society for Aesthetic Plastic Surgery (ASAPS) is the only plastic surgery organization devoted entirely to the advancement of cosmetic surgery. ASAPS is recognized throughout the world as the authoritative source for cosmetic surgery education. U.S. members are certified by the American Board of Plastic Surgery. Canadian members are certified in plastic surgery by the Royal College of Physicians and Surgeons of Canada
# # #A link to an article from yesterdays New York Times regarding the proposed Senate Health Care bill is pasted below:http://www.nytimes.com/2009/11/19/health/policy/19health.html?scp=1&sq=health%20care%2031%20million&st=cse
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