There is a clause in the Patient Protection and Affordable Care Act that members on both sides want repealed and, not surprisingly, it is one of the few provisions in the new Republican sponsored healthcare bills that both sides tend to agree on. In 2018, there will be an added “Cadillac tax” on businesses that provide more than $10,200 in benefits to individual employees.
Some companies like Google and Boston Consulting Group have lavish on-site benefits that will come under tax scrutiny next year. The Rs and Ds are less worried about backlash from large employers like those and more fearful of the thousands of small businesses (and their employees) that match Flexible Spending Accounts and reward Wellness Program participation with added healthcare dollars. Those types of benefits, which easily exceed the Obamacare limits, are taxed at 40%.