The Cost of Health Care Reform
AT&T, John Deere and Caterpillar are among the companies reported to take a major financial hit from the health care bill. All three companies are recording balance-sheet charges as the price of providing healthcare for their employees increases. AT&T has said that it will cost the $1 billion against earnings.
This is possible through a change in tax treatment of Medicare subsidies. The expense is considered non-cash, but still goes against the profitability of the company. Companies expecting a hit from the healthcare bill are trying to get the information out quickly, so their stock holders know the impact of the bill. AT&T also said they would have to cut healthcare benefits to employees and retirees.
Posted on March 30, 2010, in Newspaper & Journal Articles, Politics & The Economy and tagged AT&T, AT&T wireless, barack obama, cat, caterpillar, Democrats, healthcare, healthcare bill, healthcare reform, john deere, obama, Republicans. Bookmark the permalink. Leave a comment.