Posted on 03/28/2010 5:00:07 AM PDT by TigerLikesRooster
AT&T Plans $1 Bln Q1 Charge For New Health-care Law
3/26/2010 6:13 PM ET
Telecommunications giant AT&T Inc (T) said Friday that it plans to take a non-cash charge of about $1 billion in the first quarter to reflect a change in the tax treatment of the Medicare Part D subsidy as a results of the new U.S. health-care reform law that President Barack Obama signed this week.
In a regulatory filing, the Dallas, Texas-based company said it will be evaluating prospective changes to the active and retiree health care benefits it offers as a result of the legislation, including the additional tax burden.
The new legislation prevents corporations from deducting tax-free subsidies they receive from the government for providing retirees with prescription-drug benefits. AT&T has a large number of union workers and also a sizeable retiree base.
Also Friday, 3M Co. (MMM) said that it expects to record a one-time non-cash charge of $85 to $90 million after tax, or about $0.12 cents per share in the first quarter, resulting from the new health-care law.
Earlier this week, construction and mining equipments maker Caterpillar Inc. (CAT) that it will take a after-tax charge of $100 million in the first quarter due to the additional taxes to be levied following the new U.S. health-care legislation.
(Excerpt) Read more at rttnews.com ...
P!
It was contained in a line in a book called "The First Team" by John Ball: "Sir, you could best serve your country by slitting your throat"....
As the old line from the song “High Hopes” goes: “Whoops! There goes another million or so jobs!”
In other words, Caterpillar is about to dump their health insurance plan for employees and take the fines instead.
“The trouble ain't that there is too many fools, but that the lightning ain't distributed right.”
-----Mark Twain
......Caterpillar is about to dump their health insurance plan for employees and take the fines instead. ......
It is too soon for that. This action apparently pertains to retirees only. The tax deduction for insurance for retiree drugs has been abolished.
It would seem to mean that retiree drug programs will be curtailed and picked up by Medicare.
That is my take
If I ran a corporation in this environment the first thing I would do is tell all the unionized employees that as soon as their contracts end they will not be offered insurance so don’t ask, I’ll take the fine instead.
Here is a bigger irony. Many union pensions invest in the stock market. Obamacare cuts into corporate profits, which in turn will crash their stocks which in turn will crash the pension funds.
Hoe about telling them that the government intervention voids the contract and end the insurance immediately?
I like that one. Get ‘er over with.
Maybe the execs could use Tom Lantos line.......tell congress to commit suuuueeeecciiiiddee.
I like it too. Just get it over with. Declare that due to Government intervention and new regulations all current contracts having a health care component are now null and void and new negotiations for contracts must be opened up immediately.
It’s time to stop pussy-footing around.
Do you know if Exxon is in this situation too? My liberal co-worker’s dad is an Exxon retiree and doesn’t have to deal with Medicare (but I don’t know about prescriptions). If her Dad started complaining to her about this (and she adores her dad), she might get a clue about the impact of this insane legislation.
There was a movie about Howard Hughes. In it was a part where he got questioned by a Senate panel....he really gave them ‘what for’ and then took his leave.....I’d like to see this for real.
Perhaps the best commentary of our own little experiment in diversity for diversity’s sake.
I don’t know.
I am in a similar boat. I have Medicare Advandage and although medicare is involved, the insurance company deals with them. I essentially do nothing, they do it all.
Medicare Advantage has been changed or perhaps even eliminated by the law. I’m sure my costs for supplemental Medicare is going to be more than the current 0 cost of Medicare Advantage to me in my county.
How many will lose their jobs over this...multiply it out by all the large companies in the US, and then add in the 50th employee of small business...and you start the OBAMA DEPRESSION! Which will be many, many times worse than the Great Depression, ever was. Especially since he wants open boarders.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.