New Healthcare Law Includes Excise Tax On Restorations

The Health Care and Education Reconciliation Act of 2010--signed into law in May--has caused concern among laboratory owners wondering if the 2.3% excise tax on medical devices applies to dental restorations. At the heart of the confusion is the vague terminology in the legislation which says the 2.3% tax applies to the selling price of medical devices and is payable by the "manufacturer, producer or importer" of the device but doesn't specifically define who qualifies as a manufacturer, producer or importer.

To address these concerns, the NADL Executive Board worked with its Washington D.C.-based law firm, Reed Smith, LLP, to scrutinize the Act and has concluded that it does apply to dental laboratories. "Our legal analysis is that, as written, the legislation will apply to dental laboratories, given the FDA's previous classification of dental laboratories as medical device manufacturers," says Bennett Napier, CAE, NADL co-executive director.

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