Dear Anonymous,
One of the primary intentions is to clarify some of the existing complexities in sales tax for Durable Medical Equipment (DME). Even something as simple as a CPAP is terribly complex for both patients and providers. Using CPAP as an example, are usually considered DME which then it is subject to sales tax, but if the machine (not just the mask) is worn on the patient’s body it qualifies as a “prosthetic” and is exempt from sales tax. Det. No. 07-0150, 27 WTD 114 (2008).
Washington Department of Revenue (DOR) has ruled that sales tax is the payor’s responsibility. In many instances where the insurance provider does not recognize reimbursement of sales tax as a covered benefit, the tax responsibility ultimately falls on the insured patients themselves. This is an incredible burden for the patient during the very time in which they need assistance. Another thought worth mentioning is that DSHS pays sales tax for its Medicaid beneficiaries. The amount of loss for patients, families, providers, and the State of Washington are absolutely staggering.
Passage of such legislation would significantly assist Washington’s citizens access to more cost effective healthcare services, and would greatly reduce secondary costs associated with emergency and institutionalized care, which the State of Washington and insurance companies must then absorb. It is an utter shame that these bills have not been passed as the additional ~8.6% costs associated with sales tax places great burden on our veterans, disabled, elderly, and indigent populations.