For more information, contact Cheryl McCollum, 608/441-1216
Legislation would grant an HSA state tax exemption that 45 other states already offer
MADISON – Asking that Wisconsin be the 46th state in the nation to provide a state tax exemption for those who use health savings accounts, the Wisconsin Bankers Association is urging Gov. Jim Doyle to sign Assembly Bill 4 into law.
AB 4 was approved by the State Senate on Tuesday. The bill would provide Wisconsin residents a break on state income taxes for contributions to health savings accounts. Taxpayers are currently allowed to deduct their contributions to the accounts from their federal taxes. Earnings on the accounts are also tax-deductible and funds may be used tax-free to pay for health care.
“You have vetoed this legislation three times,” said Kurt Bauer, president/CEO of the Wisconsin Bankers Association, stating that you believe this legislation is “‘only viable for person with higher incomes.’”
“But according to the American Health Insurance Plans, 60 percent of all health savings accountholders are over the age of 40 and make less than $50,000 a year,” stated Bauer in his letter to the governor. Bauer added that health savings accounts are “part of the solution” to reducing spiraling employee health insurance costs and to helping more individuals gain access to health care.
According to the HSA Coalition, one-third of all people who buy HSA plans were previously uninsured.
“If your goal is to increase the number of Wisconsin workers with health insurance coverage and to increase competitiveness of Wisconsin businesses, then I urge you to sign AB 4,” Bauer stated. “Health Savings Accounts allow people to manage their own costs and make their own decisions. HSAs have an inherent ability to bring costs under control.”
