ADA joins coalition opposing health benefits tax

Washington鈥擳he Association joined dental, labor and benefits groups urging Congress to eliminate or modify substantially an “unfair and punitive” benefits tax before sending a health care reform bill to the White House. ADA policy opposes taxation of employer-provided benefits.

“The excise tax could lead many employers to reduce benefits by eliminating limited service supplemental benefits and FSAs (flexible spending accounts) that fund much-needed and prevention-oriented dental and vision care in order to avoid the tax,” the anti-tax coalition told congressional leaders negotiating a health care reform bill.

Association policy is clear: Opposition to Taxation of Health Care Services and Fringe Benefits (1969:325; 1982:549) says:

Resolved, that the American Dental Association, for the good and welfare of the public, go on record as being opposed to all forms of taxes on health care services including employer paid health fringe benefits.

The聽coalition letter to House Speaker Nancy Pelosi (D-Calif.) and other members of Congress negotiating a final health care reform bill invites them “to contact any of the undersigned if you have questions or would like further information” and lists the Academy of General Dentistry, Academy of Oral and Maxillofacial Pathology, American Benefits Council, American College of Prosthodontists, American Academy of Pediatric Dentistry, American Association of Oral and Maxillofacial Surgeons, American Association of Orthodontists, American Dental Association, Communications Workers of America, Guardian Life Insurance Company of America, Hispanic Dental Association, National Association of Vision Plans, Service Employees International Union and VSP Vision Care.

“Cuts in these crucial benefits will lead to a decline in access to necessary care,” the coalition said. “Patients rely on the preventive services covered by the dental, vision and limited service supplemental plans to prevent infections, slow the progress of chronic disease, and facilitate early treatment of preventable conditions.

“A consumer study conducted by the National Association of Dental Plans (NADP) in 2007 and federal data including the Surgeon General’s report on oral health indicate that individuals without dental coverage are 2.5 times less likely to go to the dentist and get preventive care,” the 14-organization coalition said. “As a result of the prevention orientation, dental, vision and mental health care quality has improved substantially.”

The Senate-passed health care reform bill would impose a 40 percent excise tax on health plan costs exceeding $8,500 annually for single coverage and $23,000 annually for family coverage and would count medical and dental premiums and flexible spending accounts in determining whether the cap is exceeded. The House-passed bill does not include the excise tax. (See also聽ADA News Today coverage)

The Association opposes the “premium cap” and is working to have it eliminated or to remove dental coverage and FSAs from the calculation.

“For millions of patients and consumers, most of whom are middle and low income working Americans, the excise tax is unfair and punitive, and would lead to reduced preventive, primary care services,” the coalition letter asserted.