In July 2025, Congress passed the One Big Beautiful Bill Act (OBBB)—and while the name may sound playful, its implications for dental practices are anything but. This sweeping piece of legislation touches nearly every corner of the dental industry, from tax rules and financing options for future dentists to the way Medicaid-funded care is delivered.

If you’re a practice owner or dental leader, here’s what you need to know.

Tax Relief for Practices

For many small and mid-sized dental practices, the biggest win in the bill is the preservation of the pass-through entity tax deduction (PTET). Without it, S-corporations and partnerships could have faced significant tax hikes.

Other tax provisions in the bill bring added benefits:

20% small business income deduction
100% bonus depreciation on equipment purchases
Expanded deductions for staff training, certifications, and continuing education
Research and development credits for practices investing in innovative techniques or new technology

These tax advantages free up resources you can put back into your practice—whether that means upgrading to the latest imaging system, adding operatories, or increasing your marketing reach.

Student Loan Shake-Up

One of the most controversial parts of the OBBB Act is the elimination of Grad PLUS loans, a financing lifeline for many dental students. The new borrowing caps—$50,000 per year and $200,000 total—are significantly lower than the average dental school debt, which can easily exceed $300,000.

This change could reduce the number of qualified graduates entering the profession. With many practices already feeling the pinch from staffing shortages, fewer new dentists in the pipeline could make recruiting more competitive and costly in the years ahead.

Medicaid Cuts and Access Challenges

The bill reduces Medicaid funding by over $1 trillion, adding:

Work requirements for eligibility
Semiannual eligibility checks
Reduced retroactive coverage
Increased cost-sharing for certain services

Dental-specific concerns include potential cuts to adult dental benefits, which are optional for states, and lower reimbursement rates for providers. States with already low payment rates could see even more dentists limit or drop Medicaid participation.

Practices that serve a significant Medicaid patient base may need to re-evaluate their payer mix or operational model to remain financially viable.

Navigating the New Landscape

For dental practices, these legislative changes represent both challenges and opportunities. Strong tax provisions may help you reinvest in your business, but looming workforce and access issues could require strategic adjustments.

As consultants, we recommend:

Tax planning now to take advantage of deductions before year-end
Reviewing your staffing and recruitment strategy in anticipation of a tighter talent market
Assessing your payer mix and exploring alternative models, such as membership plans or financing options for patient responsibility
Keeping communication open with patients about changes in coverage or care options

The OBBB Act is more than just another policy update—it’s a shift that will ripple through the dental industry for years. The right strategy today can help you stay ahead of the curve and protect your practice’s growth.