Prudential to take $100M health care charge in 1Q (ObamaCare)

AP ^

[REPANDPROUDOFIT]

In Waxman's letter to the CEO's, he demands all documents, including emails and accounting methods, that show how the companies came to the conclusion that they will sustain losses. The information must be delivered two weeks before the hearings. Therefore, the committee will have time to prepare arguments IN FAVOR of the health plan. Why don't companies have the same right to know the committee's line of attack?

I see another public humiliation exercise in the making. Then, after the cameras are turned off, the real bartering will begin.

[opentalk]

bttt,

Maybe we should put Waxman on trial.

[PA-RIVER]

Is this charge, is it a loss for the companies as they cant deduct it from taxes any longer? Correct?

So, this means it will cost a half million jobs??? Or more???

Not bad for a communist plan. Usually they kill alot more people when they implement their plans.

[Lmo56]

Is this charge, is it a loss for the companies as they can't deduct it from taxes any longer? Correct?

As far as I know - part of the Sarbanes-Oxley law. All companies have to report any changes that materially affect shreholder equity to the SEC [in an expeditious fashion].

They used to be able to deduct for prescription plans paid to retirees. Now they can't - so they have to take the charge now and will continue to do so in the future as long as they pay for those plans.

This directly dilutes shareholder equity so, presumably, at some time in the future - the companies will terminate the plans and the retirees will be stuck with getting prescriptions on their own ...

[SCalGal]

They are legally required to by the SEC and Sarbanes-Oxley.

Ought to do wonders for the stock market. /sarc