Cosmetic Surgery Tax
November 30th, 2009 Troy Andreasen M.D.On November 21, at 8:00 p.m. by a vote of 60-39, the Senate approved a motion to proceed to consideration of the Patient Protection and Affordable Care Act, better know as the Senate health reform bill. At the 11th hour, a cosmetic surgery tax provision was slipped into the bill proposing a new 5 percent tax on elective cosmetic procedures. This was a surprising addition to the 2,074-page bill that is calculated to generate only $5 billiion over the next ten years to help fund the $849 billion plan. This new tax would fall on individuals who undergo these procedures and could be effective as early as January 1.
The American Society of Plastic Surgeons has vehemently opposed this new tax arguiing that it is discriminatory, arbitrary, and ineffective. As 86% of all cosmetic surgery patients are women, elective surgery taxes unfairly target females. Moreover, cosmetic surgery is no longer an exclusive luxury reserved only for the wealthy–the vast majority of patients in my practice are working women. Recent research reveals that 60% of people considering plastic surgery within the next ten years report an annual household income of $30,000 – $90,000. Only 10% report incomes greater than $90,000. This evidence seems to refute the argument of some that elective surgery taxes are similar to “luxury” taxes that affect only a privileged few.
This tax reminds me of the state sales tax placed on saline breast implants a few years ago. This tax did increase the price of Inland Empire breast augmentation procedures slightly and was later repealed. In my practice, we absorbed this fee in the global surgical price since it represented only a small portion of the overall charge. Although this 5% tax will affect the breast augmentations, breast lifts, tummy tucks, liposuctions, and facial rejuvenation procedures that I perform, the overall effect on pricing will not be prohibitive.
As a member of the American Society of Plastic Surgeons and the American Society of Aesthetic Plastic Surgeons, I will join my voice to the opposition and see how this all pans out over the next several weeks. I do want my patients aware of these current events, however, and the issues that board-certified plastic surgeons face. And, as always, I will try to keep you apprised of the changes as they, and if they, occur.
Please have confidence that, in my practice, we will try to absorb some of these cost challenges internally and we will not use them as an excuse for across-the-board fee increases. I am hopeful that only the surgeon’s fee will be taxed and not the global fee that includes the anesthesiology services and the surgery center charges. If that is the case, the overall effect on pricing will also be minimal.
We have been aggressive in our price reductions during this recent economic downturn but have still insisted on only the highest quality of care. I have avoided taking the cost-reducing shortcuts that compromise the quality of the patient experience and, by so doing, have not joined in the low-cost, low-quality model of plastic surgery so prevalent today. I will continue to do so despite this new tax proposal and its implications on pricing.
I continue to be grateful for your loyalty as patients and for the continued referral patterns we see witihin our practice. Nearly 90% of our new patients come from previous patient referrals–a testament of our mission to take excellent personalized care of each patient. We wish you the best as you prepare for the holidays.
