State Rep. Bronna Kahle this week introduced a plan to clarify state law and ensure implantable medical devices are exempt from Michigan’s 6 percent sales and use tax — ultimately making vital health-related procedures less expensive for patients.
Kahle said her proposal will clarify Michigan law to ensure patients are not paying for additional taxes when they need surgically implanted devices such as joint replacements, hip implants, and spinal stimulators for pain management. Kahle said the clarification is needed because of recent changes in policy from the Michigan Department of Treasury.
The original intent of Michigan law was to keep the devices tax exempt and this measure is needed to help keep health care affordable in Michigan, Kahle said.
“Adding taxes on these devices raises costs for health care providers – costs ultimately passed along to the patients paying the bills, either through out-of-pocket charges or higher insurance premiums,” said Kahle, of Adrian. “Making sure these vital devices are not taxed will lower costs and help make sure more Michigan residents get the help they need to lead healthier, happier lives.”
Other types of prosthetic devices – including eyeglasses, hearing aids and walkers – are excluded from Michigan’s sales and use tax and Kahle’s plan is consistent with how other prosthetics are treated in Michigan. In 2017, Kahle successfully passed a new law that added dental prosthetics such as crowns, bridges and dentures to that list.
Kahle’s new legislation is House Bill 4204. Along with House Bill 4203, the legislation has been referred to the House Tax Policy Committee for consideration.