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Senate Bill 76 – calling for an
increase in PA’s sales tax and
expansion to
include the taxation of services
in the Commonwealth – is problematic for
physicians and other health care providers because:
- Many services used by patients will be subject
to the sales tax, increasing the already high cost
of health care and potentially limiting access to
care due to affordability.
- Many services used by physicians, such as
outsourced practice management services, will be
subject to the tax. These costs will ultimately be
passed on to patients and/or health insurers, again
raising the cost of providing care.
- Requiring physicians to collect the tax from
patients, without knowing how much they will
actually be paid by the patient’s health insurer, is
profoundly unfair and creates huge logistical
problems.
While there does not appear to be
a specific authorization to tax routine physician
visits or services, taxable items include, but are not
limited to, a long list of health care services, which
will clearly impact Pennsylvania physicians and other
providers, increase the cost of health care, and
potentially reduce access to
care.
Contact
your state senator and urge them to
oppose SB 76 and any attempt to include its provisions
in other legislation via the amendment
process.
Additional Problems with
SB 76:
- The requirement in SB 76 that the tax on
services is to be collected by the vendor. This
means that a health care provider who provides a
targeted service would be required to collect the
tax from the purchaser of that service (i.e.
patient). This simply does not work in the health
care arena.
- There is even a series of categories for
educational institutions, including medical schools.
The category is limited to non-tuition and
non-housing charges, but will still have a financial
impact on these institutions.