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.

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Posted on March 30, 2010, in Newspaper & Journal Articles, Politics & The Economy and tagged , , , , , , , , , , , . Bookmark the permalink. Leave a comment.

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