Strategies for Enacting a Hearing Aid Tax Credit
By Joan Cassidy
Editor: Hopefully you're already aware of the effort to enact a
hearing aid tax credit. Many of the national hearing loss associations
are campaigning for the passage of bills that would make this a reality.
It looks like this bill will be considered soon, and your
representatives need to hear from you! Steve Frazier of the Albuquerque
SHHH chapter has built a great website with all the information you need
to be well informed and to urge your congressional representatives to
support the bills. Please point your browser to http://www.nowhearthis.homestead.com/
Joan Cassidy, NVRC's Loudoun County Outreach Specialist covered the
Hearing Aid Tax Credit workshop at the last SHHH convention. Here is her
report. If you'd like to share this article, please be sure to credit
NVRC. (See credit at the end of the article.)
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Moderator: Andy Bopp, Hearing Industries Association
Panel:
Brenda Battat, SHHH
Jodi Chappell, American Academy of Audiology
Karen Sealander, International Hearing Society
Andy Bopp:
The Hearing Aid Assistance Tax Credit Act HR.414 was introduced on
January 16, 2005, by Congressman Jim Ryun (R-Kansas). On May 18, 2005,
Senator Norm Coleman (R-Minnesota) introduced the Senate version,
S.1060. This legislation would allow a credit against income tax for the
purchase of hearing aids. The credit is $500 per hearing aid, once every
five years for people over 55 and for parents buying hearing aids for
dependent children. This credit would come directly off the amount of
tax that you owe.
In the House, the Ways and Means Committee, chaired by Bill Thomas of
California, will make the decisions. In the Senate it will be the Senate
Finance Committee, chaired by Charles Grassley, Iowa. Their support is
critical.
Only large bills are debated on the floor of Congress. This tax
credit is considered a small bill and will be attached to larger
legislation, so it's a matter of finding the right "vehicle".
Right now Social Security and fiscal restrictions are a big issue,
making it harder to pass tax credits. However, health issues are always
important. Medicare specifically excludes hearing aids and it would take
an Act of Congress to get that changed.
There is broad bipartisan support for this credit and no real
opposition. The age was lowered to 55 thanks to the work of Brenda
Battat and SHHH. This is a non-refundable credit meaning that you must
owe taxes to benefit. Congress will not vote for a refundable credit
that would help people who do not owe taxes.
Talking points for meeting and writing to your legislators:
95% of people with hearing loss could be successfully treated with
hearing aids; only 22% currently use them.
One million children with hearing loss are not currently using
hearing aids and about 9.7 million Americans over 55, who could benefit
from hearing aids, have not bought them.
With children the sooner the better for hearing assistance, so they
can acquire a language.
It saves money in the long run since they require fewer school
services.
It is a small investment with large rewards.
For older people, hearing assistance improves the quality of life and
allows them to remain independent.
40% of individuals with hearing loss have incomes of less than
$30,000 a year.
30% of those with hearing loss give financial problems as main reason
they do not use hearing aids.
The average cost for a hearing aid in 2004 was $1,800 and almost 2/3
of people require two devices, increasing average expense to $3,600.
Hearing aids not covered by Medicare or most private insurance.
71% of hearing aid purchases are paid entirely by the consumer.
How to pass a bill: it's not an easy task. In 108th Congress
2003-2004, 8468 bills were introduced, but only 498 enacted into law.
1. Politics: Must be sufficient constituent contact to members of the
House and Senate to convince them there is political merit to supporting
a hearing aid tax credit. Must think it's worth their while. We need
constant contact with legislators telling them what voters want.
2. Policy: Must be carefully crafted position statements and
supporting documentation. Help them with talking points and compelling
reasons for when they talk to their colleagues.
3. Process: Need for a vehicle. We must show enough political and
policy strength to earn a place on a larger legislative vehicle.
There is broad support for these bills from 18 national hearing
related organizations, no opposition. This gives you power when you talk
to legislators or the media. Grassroots support is vital.
Part Two
