State governors mull taxes on cosmetic procedures
cosmetic procedures such as Botox is causing controversy amongst
proponents of plastic surgery, reports Simon Pitman.
Since New Jersey introduced a tax on cosmetic procedures in June last year, the move has been met with a mixed reception. On the one hand state governors claim that the increased revenue could help increase expenditure on health, poverty and education, whereas those involved in the industry claim it could impinge upon the health and well-being of individuals.
The New Jersey's bill meant a 6 per cent levy on cosmetic procedures and 3.5 per cent levy on physician-owned surgical centers.
"The people of New Jersey should be very concerned about what these new laws may mean to their health in the future," said Rod Rohdrich, MD and president of the American Society of Plastic Surgeons shortly after the bill was made law.
"While we understand many states are grappling with the need to resolve huge budget deficits, this law sets a dangerous precedent for lawmakers to consider taxing patients who need elective bariatric, lasik, orthopeadic or other medical procedures based on the state's, rather than a physician's interpretation of medical 'necessity'," he added.
But now the issue looks set to become even more hotly debated, as state governors in Arkansas, Illinois, New York, Tennessee and Washington try to pass bills or budget proposals that will introduce similar taxes.
The New Jersey law slapped taxes on procedures ranging from Botox and chemical peels to more aggressive treatments such as liposuction and breast enlargement. The proposals in the other states aim to levy taxes in the region of 6 to 7.5 per cent on the cost of a range of similar procedures.
Although New Jersey's law, and the proposed laws in the other states, exempts patients suffering from genetic or birth defects, disfiguring diseases and disfigurement caused by accidents, plastic surgeons say there is plenty of gray area, which could leave many patients unfairly penalized.
With many state budgets currently suffering from crippling deficits, the cosmetic surgery might seem like an easy target to make some much-needed extra revenue. According to the American Society of Plastic Surgeons, 9.2 million people underwent cosmetic surgery procedures last year, a 24 per cent jump since 2000.
Earlier this year a Washington state senator tried to introduce a similar bill on cosmetic procedures to levy a 6.5 per cent tax on cosmetic surgery procedures in an effort to fund children's health care. The bill was overturned by the senate house, but plans are underway to re-submit it later on in the year.
Likewise, a move to introduce a similar bill in Illinois to fund research into stem cell treatment was also scrapped last month on the grounds that it was a tax aimed at funding a contoversial new medical procedure.
