GOP looks to cap employer tax break in Obamacare replacement

Republicans facing tough questions about how to pay for their Obamacare replacement are looking hard at a controversial but revenue-raising idea: capping the tax break for employer-sponsored coverage.

The proposal is part of draft legislation that House Republicans are working on, according to lobbyists with knowledge of the discussions. Not only is House Speaker Paul Ryan a huge fan of limiting the tax break, but it also could help solve the underlying financial problem of keeping the law's benefits while repealing the taxes that pay for them.

No final decisions have been made about where the cap would be placed, or whether it will be included in the replacement, but employer groups say they're worried it will prove too attractive for lawmakers who are seeking a good score from the Congressional Budget Office on their Obamacare repeal-and-replace measure.

"Everything is extremely fluid right now, but all indications are that there are a lot of forces seeking to include it," said Jim Klein, president of the American Benefits Council.

Republicans want to keep some of the most expensive elements of the Affordable Care Act, including a version of subsidies to help people buy coverage. At the same time, they want to repeal many of the taxes that help pay for those benefits, including several taxes on insurers and medical device makers.