The State Assembly will vote on the Republican-backed Health Savings Account Bill, which was discussed in committee this week, early this session.

Advocates say the bill will allow many small businesses and consumers to save money on insurance, thus placing more power in the hands of the people.

Mike Prentiss, spokesperson for Sen. Scott Fitzgerald, R- Juneau, said, “It’s a great deal for farmers and small businesses because it is hard to get low rates.”

The cost of the bill over the next eight years was estimated at $38.7 million in May 2004. Gov. Jim Doyle vetoed the bill in the same month, finding it not suitable for implementation.

“The government cannot afford to spend money on tax breaks without demonstrable benefits,” Doyle said in a release.

Consumers who purchase the health-care plan would own and control the account. The plan allows for a variety of benefits, including a lower monthly premium compared to the average insurance policy, a large deductible for accidents and the option of choosing specific doctors and hospitals.

Also, appointments will be paid with money from a tax-deductible savings account.

“This is a new, innovative way to bring market services back into health-care services,” Prentiss said.

According to Sabrina Gentile, director of governmental relations for the Wisconsin Farm Bureau, the new plan would especially help farm families.

“Many farm families have high-deductible health plans, and this would give them some relief right now to pay for them,” she said.

The new plan would also help counter Wisconsin’s status as one of the few states lacking a law allowing consumers to take advantage of the same benefits as the federal government on their state tax returns.

According to Gentile, the system is a way to ease health-care costs and can help bring insurance to the uninsured.

While many view the plan as a great benefit to taxpayers, some remain cautious when approaching the plan.

“It’s a tool that we can use that helps taxpayers keep more of their own dollars,” Adam Peer, spokesperson for Rep. Ann Nischke, R-Waukesha, said. “This is not the answer to all health-care problems.”

In most existing health-savings accounts, employers make their workers start over from zero each year. The new health-savings account would carry money over from year to year.

According to Melanie Fonder of the governor’s office, the bill will not necessarily help everyone.

“From what we know this far, the majority of people using them are wealthier and healthier,” Fonder said. “Then, later on, that will basically cause the premiums to go up for everyone else.”

In Gov. Doyle’s statement detailing why he vetoed the bill in May 2004, he said employers might not continue to sponsor coverage because of its link to high-deductible medical costs.

He also said the bill would benefit the rich and that tax cuts are not justified unless there is clear economic benefit for the whole state.

Until these objections are disproved by substantial evidence to the contrary, it can be expected the governor will stand firm in his decision, Gentile said.