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Archive for Saturday, March 27, 2010

AT&T will take $1B health care charge

March 27, 2010

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— AT&T Inc. will take a $1 billion noncash accounting charge in the first quarter because of the health care overhaul and may cut benefits it offers to current and retired workers.

The charge is the largest disclosed so far. Earlier this week, AK Steel Corp., Caterpillar Inc., Deere & Co. and Valero Energy announced similar accounting charges, saying the health care law that President Barack Obama signed Tuesday will raise their expenses. On Friday, 3M Co. said it will also take a charge of $85 million to $90 million.

White House spokesman Robert Gibbs said Thursday that the tax law closed a loophole.

Under the 2003 Medicare prescription drug program, companies that provide prescription drug benefits for retirees have been able to receive subsidies covering 28 percent of eligible costs. But they could deduct the entire amount they spent on these drug benefits — including the subsidies — from their taxable income.

Comments

Sunny Parker 4 years, 9 months ago

No left nut cases posting on this matter?

Who do you think is going to pay for this increase to AT&T? It won't be AT&T I guarantee it!

Government take over! Pay for your own health insurance and health care!

Keith 4 years, 9 months ago

As always, the truth doesn't fit into a talking point. Companies that provided prescription drug benefits to their retirees got AND STILL GET, government subsidies of 28% of the cost of those programs. They also were allowed to deduct from their taxes, the money the government gave them. Congress closed that loophole. Consequently, while still receiving the subsidy, they can no longer deduct the subsidy. I know you won't believe me, so look it up in the Wall Street Journal.

“The current health-care overhaul doesn't eliminate the subsidy, nor make it taxable. What it changes is that companies will no longer be able to deduct the portion of the drug benefit paid for by the subsidy,” source: the Wall Street Journal.

They can still deduct from their taxes, the portion not subsidized.

independant1 4 years, 9 months ago

AT&T is self insured, what in the bill raised the cost of funding their plan? $124B Revenue, $10B profit 282K Employees

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