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The proposal is one of several he plans to put forth following his
“They’re not the panacea, they’re not going to solve every bit of the health care crisis,” he said of the proposed tax exemptions. “But I think they’re a key part of the solution.”
Here’s how HSAs work. People can make tax-deductible contributions into the personal accounts, and they can withdraw the money tax-free at any point to cover routine and preventative medical care.
Supporters say the program encourages people to save for their future health care expenses, and it also gives them more control over medical procedures to which they may feel entitled.
Opponents worry the program will encourage a system where healthy people leave insurance plans in favor of HSAs, meaning rates would go up to cover the people who avoid HSAs because of health problems.
A message left with the
Walker said HSAs provide a reasonable free-market solution and that they help avoid the alternative of reining in costs by having to ration health care.
He said he was confident state lawmakers would see the value in making HSAs tax-exempt.
“Because what’s the harm in it?” he said. “It’s not mandating (anything), it’s not dictating. It’s giving you one more option.”
Making HSAs tax-exempt would save
Walker has also promised to propose a number of other measures he said would improve