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December 12, 2010
Wisconsin to Dump State Tax on Health Savings Accounts
Republican Gov.-elect Scott Walker plans to remove Wisconsin's tax on health savings accounts. He says this could save taxpayers from $4 million to $8 million, help many small businesses and attract more employers to Wisconsin.
Wisconsin is one of only four states that tax health savings accounts, so there's a lot of precedent for ending the tax. With a health savings account (HSA), people can make tax-deductible contributions and withdraw the funds tax-free to cover qualified medical expenses.
HSA Plans encourage saving to cover future health care, and make certain services that may not be covered by standard policies, such as acupuncture, tax deductible.
Since health savings accounts only work with high-deductible health insurance plans, there is also concern that if healthy people switch from standard insurance plans to health savings accounts, premiums will go up for people who really need the full-coverage of low-deductible plans.
Walker says that health savings accounts help avoid the possibility of rationing health care, but he admits, "they're not going to solve every bit of the health care crisis," [but] "they're a key part of the solution." To learn more about the health savings account alternative, visit: http://www.health--savings--accounts.com
Posted by Wiley Long at December 12, 2010 11:28 AM