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Thursday, November 19, 2009

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Plastic surgeons face tax in health bill

A plastic surgeon prepares for surgery

The Senate health bill includes a 5% tax on optional cosmetic procedures. But plastic surgeons have their knives out for this idea. Bob Moon reports.

A plastic surgeon prepares for surgery on the stomach of a patient. (Anwar Amro/AFP/Getty Images)

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TEXT OF STORY

Kai Ryssdal: The more you read a 2,000 page piece of legislation, the more you learn. Like this tidbit: there is a 5 percent tax in there on optional cosmetics procedures. Stuff like botox treatment and nose jobs and tummy tucks. The proceeds are supposed to raise almost $6 billion over the next decade to help pay for health-care reform. But as you might imagine, plastic surgeons have their knives out for this idea. Here's our senior business correspondent Bob Moon.


BOB MOON: Leading plastic surgeons we spoke to today sought to shed the glamorous image their profession gets from Hollywood, on shows like "Nip/Tuck."

TV CLIP: Since 1987, the one luxury business that has always seen annual growth has been plastic surgery.

DR. RENATO SALTZ: Contrary to popular belief, cosmetic surgery is no longer a exclusive luxury for the wealthy.

Salt Lake City plastic surgeon Renato Saltz is head of the American Society for Aesthetic Plastic Surgery. He says the Senate plan would unfairly target patients who already pay full price. Cosmetic procedures aren't covered by insurance.

SALTZ: Over 80 percent of our patients are really middle class. We feel that a tax like this would discriminate against women -- 86 percent of total cosmetic surgery is performed on women.

At the American Society of Plastic Surgeons, Seattle-based president-elect Dr. Phil Haeck says now isn't the time to single out those who see a need for his services.

Dr. PHIL HAECK: I have had any number of patients come through lately and say, I just lost my job, I haven't had to go out and apply for a job for 10 years, I want to look a little better. Should we penalize that patient with an additional 5 percent tax? I don't think so.

Haeck doubts the measure will raise the billions lawmakers expect -- especially since members of his organization have been reporting their business is off as much as 30 percent this year. He also says distinguishing between what's optional and what's necessary reconstructive surgery would be very tricky in many cases.

Plastic surgeons argue their procedures aren't any more frivolous than laser-eye surgery or other popular medical procedures that wouldn't be taxed.

I'm Bob Moon for Marketplace.

Comments

  • Comment | Refresh

  • By Jonathan Lovelace

    From Milan, MI, 11/19/2009

    There's a big question that needs to be answered when considering a tax. Is the tax primarily intended to raise revenue, or is it primarily intended to discourage the thing that's being taxed? If the former, the industry has made an argument that it won't raise much. If the latter--good heavens, why? Why try to discourage one of the few parts of the health care industry where the economics are actually sane? The fact that insurance doesn't cover plastic surgery is precisely what has brought the price down--an economic model that we would do wel to apply to the whole sector.

    By Debra Johnson

    From Sacramento, CA, 11/19/2009

    This is a tax that would unfairly target middle class women.
    If we need additional money for government to function, we should tax our citizens equally. This could be done by raising the income tax or having a national sales tax. These nickel-and-dime taxes that target special groups are patently unfair.

    By Robert Sample

    From Belleair Beach, FL, 11/19/2009

    I lost my position when I was over 55. The last thing I ever considered was having plastic surgery to improve my appearance; i.e., look younger.

    Should one have to pay an additional 5% tax to "look younger"? Yes. Should one pay the same tax to correct a disformity from an accident or birth defect? No.

    In fact, laser-eye surgery should be taxed as well as one can get 20/20 vision with corrective lenses; i.e., glasses, which one cannot obtain with laser-eye surgery.

    The humerous aspect of this debate is that everbody wants reform but they do not want to pay for it.

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