Dear (Member of Congress),
As your constituent, and on behalf of (company) and the Hearing Industries Association, I am contacting you to urge your cosponsorship and support of H.R. 3103, the Hearing Aid Assistance Tax Credit Act. This bipartisan and fiscally responsible bill would provide a tax credit of up to $500 per hearing aid, once every five years. The tax credit would be available either for persons over 55, or for parents purchasing a hearing aid for a dependent child.
The circumstances surrounding adult and child hearing loss are usually very different, in that most hearing loss in older adults develops over a period of 25-30 years, and increases dramatically with age. While hearing loss in children can occur at any time as the result of disease or trauma, most cases are congenital, with 33 babies born every day who are profoundly deaf and 2-3 times that number born with partial hearing loss, making hearing loss the number one birth defect in America. With early treatment, infants identified with hearing loss can be fit with amplification as young as 4 weeks of age and can be mainstreamed into regular classrooms. On the contrary, children who do not receive early intervention cost schools an additional $420,000 in special education and an overall lifetime cost of around $1 million per child, according to a 1993 study by the Marion Downs Center.
For the 28 million Americans who have some degree of hearing loss, the vast majority (95%) can be treated with hearing aids. Yet only 20% of those with hearing loss use hearing aids, while a full 30% cite financial constraints as the reason they do not use hearing aids. (My company) (I) work with the medical community and hearing aid professionals to treat hearing loss in children and adults, and we have seen first hand the dramatic benefit that hearing aids can provide in terms of greater safety, increased ability to communicate, and an overall significantly enhanced quality of life.
This modest bill would help countless older adults and children who need hearing aids, but simply cannot afford them, and is a far simpler means to address this problem than through other far costlier measures, such as Medicare expansion or mandatory insurance coverage. Given the relatively low utilization of hearing aids by individuals with hearing loss (around 6 million), coupled with the fact that the benefit would be available to an individual only once every five years, the cost to implement this legislation would be minimal. ), coupled with the fact that the benefit would be available to an individual only once every 5 years, the cost to implement this legislation would be minimal. the Hearing Industries Association estimates that the bill would cost under $_____. The offsets, in terms of special education costs for children, as well as reduced injuries and psychological and mental disorders associated with hearing loss in older adults, are immense.
Thank you for your time and consideration of this small, but important, bill that will go a long way to improving the quality of life for many Americans with a hearing loss. Your office should have recently received a 'Dear Colleague' on the Hearing Aid Tax Credit Assistance Act. For additional information or to sign onto H.R. 3103, please contact Jan Graves in Rep. Ryun's office at 202/225-6601. On behalf of my company and the many individuals we serve each year with hearing loss, I look forward to your response.
108th CONGRESS
1st Session
H. R. 3103
To amend the Internal Revenue Code of 1986 to allow a credit against income tax for the purchase of hearing aids.
IN THE HOUSE OF REPRESENTATIVES
September 16, 2003
Mr. RYUN of Kansas (for himself, Mrs. MCCARTHY of New York, Mr. WALSH, Mr. PAYNE, and Mr. LYNCH) introduced the following bill; which was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to allow a credit against income tax for the purchase of hearing aids.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the 'Hearing Aid Assistance Tax Credit Act'.
SEC. 2. CREDIT FOR HEARING AIDS FOR SENIORS AND DEPENDENTS.
(a) IN GENERAL- Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to nonrefundable personal credits) is amended by inserting after section 25B the following new section:
'SEC. 25C CREDIT FOR HEARING AIDS.
'(a) ALLOWANCE OF CREDIT- In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter an amount equal to the amount paid during the taxable year, not compensated by insurance or otherwise, by the taxpayer for the purchase of any qualified hearing aid.
'(b) MAXIMUM AMOUNT- The amount allowed as a credit under subsection (a) shall not exceed $500 per qualified hearing aid.
'(c) QUALIFIED HEARING AID- For purposes of this section, the term 'qualified hearing aid' means a hearing aid--
'(1) which is described in section 874.3300 of title 21, Code of Federal Regulations, and is authorized under the Federal Food, Drug, and Cosmetic Act for commercial distribution, and
'(2) which is intended for use--
'(A) by the taxpayer, but only if the taxpayer (or the spouse intending to use the hearing aid, in the case of a joint return) is age 55 or older, or
'(B) by an individual with respect to whom the taxpayer, for the taxable year, is allowed a deduction under section 151(c) (relating to deduction for personal exemptions for dependents).
'(d) ELECTION ONCE EVERY 5 YEARS- This section shall apply to any individual for any taxable year only if such individual elects (at such time and in such manner as the Secretary may by regulations prescribe) to have this section apply for such taxable year. An election to have this section apply may not be made for any taxable year if such election is in effect with respect to such individual for any of the 4 taxable years preceding such taxable year.
'(e) DENIAL OF DOUBLE BENEFIT- No credit shall be allowed under subsection (a) for any expense for which a deduction or credit is allowed under any other provision of this chapter.'.
(b) CLERICAL AMENDMENT- The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 25B the following new item:
'Sec. 25C. Credit for hearing aids.'.
(h) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 2002.
H.R. 3103 Hearing Aid Assistance Tax Credit Act:
Talking points
What would H.R. 3103, the Hearing Aid Assistance Tax Credit Act, do?
- Provide a tax credit of up to $500 per hearing aid, available once every 5 years, towards the purchase of such hearing aid, available to: 1) individuals age 55 and over, or 2) those purchasing a hearing aid for a dependent.
- While 95% of individuals with hearing loss could be successfully treated with hearing aids, only 22% (6.35 million Americans) currently use them according to the most recent 'MarkeTrak' report, the largest national consumer survey on hearing loss in America. Included in this figure are 1 million children under the age of 18 with a diagnosed hearing loss who are not now using a hearing aid, and around 9.7 million Americans age 55 and over.
- 40% of individuals with hearing loss have incomes of less than $30,000 per year. A Department of Commerce study indicates that the overall family income of the hearing impaired population is almost half that of the general, non-hearing impaired population.
- 30% of those with hearing loss cite financial constraints as a core reason they do not use hearing aids, according to a MarkeTrak report.
- The average cost for a hearing aid in 2002 was over $1,400, and almost 2/3 of individuals with hearing loss require two devices, thereby increasing the average out of pocket expense to over $2,800.
- Hearing aids are not covered under Medicare, or under the vast majority of state mandated benefits. In fact, 71.4% of hearing aid purchases involve no third party payments, which places the entire burden of the hearing aid purchase on the consumer, according to 'MarkeTrak'.
- Hearing loss is the most prevalent birth defect in America today, affecting 2-3 infants per 1,000 births. 1.2 million children under age 18 have a hearing loss.
- For adults, hearing loss usually occurs more gradually, but increases dramatically with age, with 10 million older Americans experiencing age-related hearing loss.
- According to "Healthy People 2010", an HHS-led program to address America's health needs, another 10 million young adults and working aged Americans have noise-induced hearing loss. A primary objective of Healthy People 2010 is to 'increase the number of deaf or hard-of-hearing people who use adaptive devices, such as hearing aids. ' H.R. 3103 is one of the most practical and cost-effective tools government can use to accomplish this goal.
- Children who do not receive early intervention cost schools an additional $420,000 and are faced with overall lifetime costs of $1 million in special education, lost wages, and health complications, according to a respected 1995 study published in the Intl. Journal of Pediatric Otorhinolaryngology.
- For workers, noise induced hearing loss is the most common occupational disease and the second most self-reported occupational injury.
- Studies estimate a 50-70% reduction of income received for workers with untreated hearing loss as compared to that received by their non-hearing impaired peers.
- For seniors, untreated hearing loss causes additional costs to Medicare and other health programs due to loss of independence, social isolation, depression, safety issues, and quality of life. The Senate Special Committee on Aging, in S. Rpt. 107-74, noted: "As the wave of seniors begins to experience age-related disability, our current long term care system will not be able to support this demographic shift." Hearing aids help enable seniors to retain their independence and avoid other long-term care costs.
- In 1999, the National Council on the Aging (NCOA) conducted the largest known study on the effects of untreated hearing loss among adults and their families. The study quantified both the negative results of untreated hearing loss and the positive impact of hearing instruments on an individual's quality of life. It found that impaired hearing results in distorted communication, greater isolation, withdrawal, reduced sensory input, depression, anger, and severely reduced overall psychological health. Conversely, hearing aid usage among those with hearing loss was found to significantly impact the following areas:
- Increased earnings power, of around 50%;
- Enhanced emotional and mental stability and reduced anger, anxiety, depression and paranoia;
- Improved health status and less incidence of pain;
- Reduced social phobias and improved interpersonal relationships.
Currently 1.28 million Americans of all ages purchase hearing aids each year, with some individuals requiring two devices, bringing the total number of hearing aids purchased across all age groups to approximately 2 million. This number has remained constant over recent years.
H.R.3103 would provide a potential benefit to around 2 million individuals, many of whom cite financial reasons as the primary barrier to treatment, and would be available only once every 5 years to individuals with a hearing loss. H.R.3103 is not intended to cover the full cost of hearing aids, but will simply provide some measure of financial assistance to the groups who are most in need of these devices but are
unable to afford them: those approaching or in retirement, and families with children.
Who supports this bill?
This bipartisan initiative is supported by major organizations concerned with hearing health, including the Hearing Industries Association, Self-Help for Hard of Hearing People, International Hearing Society, Deafness Research Foundation, and the American Academy of Audiology, among others.
10/03
