August 26, 2020
ASA Endorses Legislation to Remove Negative Tax Implications for Physician Practice COVID Relief
The American Society of Anesthesiologists, along with several other medical organizations, sent a formal communication to Representatives Axne (D-IA) and Dunn (R-FL) as well as Senator Blackburn (R-TN) expressing support for the Eliminating the Provider Relief Fund Tax Penalties Act of 2020 (H.R. 7819 and S.4525).
If enacted, the legislation would make pandemic-related expenses attributed to Provider Relief Funds tax deductible. Specifically, the legislation would ensure that vital funding through the Public Health and Social Services Emergency Fund (PHSSEF) and similar programs provided in response to COVID-19 is not taxable, and that physicians receiving these funds maintain tax deductions attributable to these funds. Currently, tax-paying health care providers lose at least 21% of the benefit of these funds as a result of their tax status.
Congress’ allocation of $175 billion in financial relief to health care professionals through the PHSSEF has been very necessary and greatly appreciated. This vital funding has helped many health care professionals avert practice closures and loss of access to care for patients.
ASA is pleased that H.R. 7819/S. 4525 would remove the negative tax implications for PHSSEF recipients by ensuring that all Provider Relief Fund assistance is not taxable, while maintaining that expenses tied to this assistance are tax-deductible.
We applaud and thank lawmakers for promoting this change which is essential to the support of ASA members during this health crisis.