Within the proposed Senate comprehensive health care legislation, one revenue raiser that was not contained in the House bill is the so-called “Botox tax”, or to some, the “Bo-Tax”. Specifically, the language would impose a 5% tax on all elective cosmetic surgical procedures that are not done to address deformities due to genetics, accidents, or disfiguring diseases as currently defined in the tax code. The tax would be paid by the consumer and collected by the doctor.
The tax was originally included in the Senate Finance Committee bill as a way to pay for the legislation. The Congressional Budget Office (CBO) has estimated the tax would raise $5 billion over 10 years, a significant chunk of money to help keep down the cost of the $849 billion bill. Majority Leader Harry Reid’s (D-NV) office told the New York Times that the tax does help keep the bill’s cost down by raising revenue within the realm of health care, a goal for his revenue raisers.
Associations immediately weighed in on the proposal using the expertise and experiences of their members. The American Society of Plastic Surgeons (ASPS) and the American Society for Aesthetic Plastic Surgery (ASAPS) in their statement on the tax note that 86% of cosmetic surgery is performed on women, almost all of them working age. A 2005 survey done by ASPS finds that 60% of respondents that planned to have a cosmetic surgical procedure done in the next two years have a household income of $30,000 – $90,000 annually, leading ASPS to point out that the tax would apply primarily to middle class households.
The American Academy of Cosmetic Surgeons, which also opposes the tax, notes in their position paper on the tax that the line between medically necessary and elective surgery is sometimes undefined. Also, the paper notes that Botox treatments are non-surgical, and questions whether they would actually be covered by the “Botox tax.”
Does your association have a position or statistics on cosmetic or plastic surgery?
Quick Hits
The Senate Democratic leadership begins finding a way to coral 60 votes to pass health care reform… The Wall Street Journal outlines some of the major amendments expected to be introduced for the Senate bill… The Washington Post outlines how some of the health care reforms could be delayed past next year, if passed… Seven issues to watch during the Senate health care debate… Opponents and proponents of the proposed health care reform bills argue about the actual cost savings of the bill… Some airline associations seek an increase in passenger fees to fund infrastructure improvements.
