Efforts To Repeal Health Law's 'Cadillac' Tax Spotlight Threat To Flexible Spending Accounts

Opponents of the tax, which would apply to generous employer health plans, say that one of the first moves companies would make to avoid the tax is jettison flexible spending accounts for workers. Meanwhile, a legislative fix to another provision that expands the small group market covered by the law could be derailed because of complicated politics.

The Wall Street Journal: 'Cadillac’ Health Tax Fight Heats Up

A looming tax on generous employer health plans could imperil flexible spending accounts, a popular benefit that lets employees set aside tax-free money for certain medical expenses. The Affordable Care Act’s tax on high-cost employer health insurance is scheduled to start in 2018, when it will impose a 40% levy on benefits that exceed a government-set threshold. Employers already are reviewing or trimming health plans to minimize the effect of this “Cadillac tax,” benefit experts say. (Armour, 9/8)

Politico Pro: Congress Faces Pressure To Push Back Obamacare's Small Group Expansion

There's growing bipartisan support to roll back a looming Obamacare provision that could raise health insurance costs for thousands of midsized businesses, but the law's complicated politics could derail congressional efforts to approve a fix. Starting next year, the Affordable Care Act expands the definition of the “small group” insurance market .... That means a broader swath of companies will have to live under new Obamacare coverage rules — most notably, a prohibition on charging employers more money based on their medical claims history or the ages of their workers. (Demko, 9/8)

This is part of the Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.

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