MADISON… Wisconsin residents are one step closer to seeing relief from skyrocketing health care costs today after the Senate approved a measure to create an individual tax exemption for health savings accounts. The legislation is authored by Representative Dean Kaufert (R-Neenah), and Senator Alberta Darling (R-River Hills).
“Health care costs are rising at astronomical rates for many people these days, and HSAs are an affordable option for small businesses and farmers to provide insurance to their employees,” said Kaufert. “In addition to offering savings, HSAs allow consumers to take an active role in their health care decisions.”
Assembly Bill 4 will create a non-refundable income tax credit for individuals who make contributions into health savings accounts. The credit is designed to create an incentive to expand the use of HSAs, which will hold pre-taxed dollars for low cost health care needs. These credits enable Wisconsin’s health care consumers to purchase less expensive, higher deductible insurance to cover any high cost medical service.
“The Republican-led legislature understands the importance of health care reform, and how giving people the ability to decide for themselves who treats them and what they will ultimately pay for the service is a step in the right direction,” said Darling. “Governor Doyle’s support of this innovative approach is the only hurdle that remains before Wisconsin can start down the road to real health care reform.”
“Today’s vote was another victory for the people who are enrolled in HSAs, and has opened the door for tax relief,” said Kaufert. “The hope is that we will be able to offer Wisconsin residents an exemption that is already available on the federal level.”
The legislation now advances to the Governor’s desk for his signature or veto.
