Hearing Aids and Tax Credits - Part 1
by Brenda Battat
Editor: You may have heard of the recently introduced legislation to
provide a tax credit for hearing aid purchase. Note that this is a
CREDIT, which means that you can reduce your income tax by the entire
amount (up to $500 per ear). Of course, that leaves out those with
incomes low enough to pay little or no income tax, who may be among
those who most need the assistance.
Here's a wonderful article written by Brenda Battat, who you may know
is one of the pillars of SHHH. The article originally appeared in the
April 12 issue of "Healthy Hearing", and is reprinted with
permission from www.healthyhearing.com & Brenda Battat.
For more information on SHHH ("America's voice for people with
hearing loss"), please visit their website at www.hearingloss.org .
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Introduction
A major focus of SHHH is making sure that anyone who needs hearing
aids is able to get them. There are different ways to ensure access to
affordable hearing aids and associated hearing health services for
children and adults. SHHH is working on many ways to expand access.
Proposed Federal Legislation:
At the federal level, SHHH supports legislation that would provide a
tax credit for the purchase of hearing aids. Bill H.R.3103 was
introduced into the House of Representatives by Rep. Ryun (R-Kansas).
H.R. 3103, Hearing Aid Assistance Tax Credit Act
Here is what it would do...
a.. Provide a tax credit of up to $500 per hearing aid, available
once every 5 years, and would be available to individuals age 55 years
and over, or for those purchasing hearing aids for a dependent.
Why do we need this special tax treatment for hearing aids?
a.. While 95% of individuals with hearing loss could be successfully
treated with hearing aids, only 22% (6.35 million Americans) currently
use them according to the most recent ''MarkeTrak' report, the largest
national consumer survey on hearing loss in America.
b.. It is estimated there are 28 million Americans with hearing loss.
Included in this figure are some 1 million children under the age of 18
with diagnosed hearing loss who are not currently using hearing aids.
Additionally, there are approximately around 10 million Americans age 55
and over who could benefit from this legislation.
c.. 40% of individuals with hearing loss have incomes less than
$30,000 per year. A Department of Commerce study indicated the overall
family income of people with hearing loss is almost half that of the
general population.
d.. 30% of those with hearing loss cite financial constraints as a
core reason they do not acquire hearing aids, according to a MarkeTrak
report.
e.. The average cost for a single hearing aid in 2002 was over
$1,400, and almost 2/3 of individuals with hearing loss require two
devices, increasing the average out-of- pocket expense to over $2,800.
f.. Hearing aids are not provided by Medicare, and are not provided
under the vast majority of state mandated benefits. In fact, more than
2/3rds of hearing aid purchases involve no third party payments, and are
indeed paid for by the consumer, according to ''MarkeTrak'.
What is the extent of the problem with hearing loss in this country?
a.. Hearing loss is the most prevalent birth defect in America today,
affecting 2-3 infants per 1,000 births. 1.2 million children under age
18 have hearing loss.
b.. For adults, hearing loss usually occurs gradually, but increases
dramatically with age, with 10 million older Americans experiencing
age-related hearing loss.
c.. According to "Healthy People 2010," an HHS-led program
to address America's health needs, another 10 million Americans have
noise-induced hearing loss. A primary objective of Healthy People 2010
is to ''increase the number of deaf or hard-of-hearing people who use
adaptive devices, such as hearing aids.' HR 3103 (see above) is one of
the most practical and cost-effective tools government can use to
accomplish this goal.
Here's part two
