Dental Politics 101: The most important course you won’t take in dental school. Education: The Key to Your Future • • • • • • Basic Sciences Ethics and Professionalism Clinical Dentistry Critical Thinking Patient Management Dental Politics Your Profession, Your Future Decisions made at the state level and in Washington affect the future of dentistry - how and where we practice - how we are compensated - what materials we are allowed to use - what procedures we are allowed to perform Whether you like it or not… GOVERNMENT IS IN THE DENTAL BUSINESS - What you pay for your dental education - Your state dental license - Taxes (personal and business) - Personnel - Regulatory mandates - Healthcare Reform If Dentists Sit on the Sidelines Government can’t MAKE your business but it can BREAK your business. Examples: Minnesota – Licensed Dental Therapist Colorado – Independent practice for RDH Alaska – Dental Health Aide Therapist Maine – Dental Therapist Protecting the Dental Profession Members cite political advocacy is the #1 benefit in organized dentistry - states employ lobbyists - Most state associations have a council or committee on Governmental Affairs - State Political Action Committees - American Dental Political Action Committee Advocacy Begins with Relationships Relationships are built on a 3 legged stool: 1. Financial Support/Volunteerism 2. Visibility (“Face Time”) 3. Credibility/Trust Advocacy Flow Chart Relationships Greater Access to Policy Makers The POSSIBILITY of Greater Influence Principles of Preventive Dentistry (Political Style) 1. DON’T wait until a crisis occurs to develop relationships with decision makers 2. Developing relationships takes time and $ 3. There is no vaccine. Continuously nurture current relationships even if there is no apparent crisis on the horizon. 4. We must establish new relationships with newly elected public officials What You Can Do • Take the time to learn about the political process in your state • Learn about issues that are important to your future • Join ASDA (American Student Dental Association) and ADPAC • Attend political events in your area What has ADA Advocacy Done for me? Legislative Successes That Save You Time and Money ADPAC Your Voice on National Issues in Washington Protecting Your Practice • Fought to exempt your practice from unwarranted government mandates o Successfully repealed Red Flags Rule for small businesses (savings: $1600/annually) o This alone has saved you more than the cost of membership in the ADA, NCDS, and your District! o Successfully exempted small businesses from complying with 1099 Reporting o Depending upon the size of your practice, this saved you between $600 and $1500 annually in accounting fees. Unwarranted Government Mandates • Advocating for incentives that expand your business opportunities.(Section 179 Expensing) o This allows dentists to use an accelerated depreciation schedule for purchases of new equipment o An accelerated depreciation schedule translates into lower taxes on the new equipment you need to provide the best care for your patients o For those who take advantage of this opportunity, this saves you thousands of dollars. Shielding Your Practice from New Taxes • Killed the proposed tax on cosmetic procedures (Health Care Reform) – If this had been included in the Health Reform Legislation, you would have to charge patients a tax on all cosmetic procedures performed in your practice. – AND, you would have to pay additional administrative and accounting fees to file the necessary tax forms. – Estimated annual savings: $500 - $1000 Shielding Your Practice from New Taxes (2) • Worked to prevent a proposed tax on S Corporations which are the most prevalent business model for dental practices. – For those who operate within an S Corporation, this kept you from paying increased federal taxes which would have decreased your profitability. – For the average dental practice, this amounts to approximately $1500 a year. Helping Reduce Practice Overhead Costs • Worked to get an amendment passed in the Senate to reduce credit card swipe fees – This decreased the transaction fees charged on accounts that were paid via credit card. – Estimated savings: $200 - $500 per year • Fought to exempt dental practices from being mandated to provide health care to employees (Health Care Reform) – Allows practice owners to choose how much they contribute (if any) to employee health insurance cost Enhancing the Image of Dentists On Feb 9, 2011 the Dental Emergency Responder Act was introduced in the U.S. House of Representatives. This would deploy dentists during a natural or man-made disaster. • This enhances the image of the profession by educating policy makers regarding the extensive education and training that are required to become a dentist. Savings Summary Program Annual Savings Exemption from Red Flags Rule $1600 Exemption From Onerous 1099 Reporting $600 Favorable 179 Expensing variable No Taxes on Cosmetic Services $500 No Additional Taxes on S Corporation variable No Excessive Credit Card Transaction Fees $200 No Federal Mandate to Provide Health Care Insurance for Employees Thousands of $$$$ No Caps on Fees for Non-Covered Services $2500 TOTAL SAVINGS $5400 Thank You!