Hatch: Cut health law's subsidies in tax debate

Senate Budget Committee Chairwoman Patty MurrayPatty MurrayCBO to release report Tuesday on ending ObamaCare insurer payments OPINION | Progressives, now's your chance to secure healthcare for all McConnell open to bipartisan deal on health insurance payments MORE (D-Wash.) will release her budget outline Wednesday. It's expected to call for more than $1 trillion in new revenue from eliminating tax breaks, but will preserve funding for the Affordable Care Act.

The health law's insurance subsidies — administered as refundable tax credits — will begin to flow next year. But by 2017, they'll be the second-biggest healthcare tax expenditure at $96 billion, Hatch said.

The ACA provides subsidies on a sliding scale, based on income, to help pay for private health insurance. The subsidies are only available to people who purchase coverage through a new insurance exchange and do not get their coverage through an employer.

The tax exclusion for employer-based healthcare benefits is the biggest expenditure in the tax code.