tell my dad nothing will change in his plan.... He's retired from ATT
Health care bill causes AT&T to take $1 billion charge, cut benefits
By: Mark Hemingway
Commentary Staff Writer
03/26/10 6:56 PM PDT
I guess they read the bill to find out what was in it:
AT&T Inc. will take a $1 billion non-cash 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.
All five are smaller than AT&T, and their combined charges are less than half of the $1 billion that AT&T is planning. The $1 billion is a third of AT&Ts most recent quarterly earnings. In the fourth quarter of 2009, the company earned $3 billion on revenue of $30.9 billion.
AT&T said Friday that the charge reflects changes to how Medicare subsidies are taxed. Companies say the health care overhaul will require them to start paying taxes next year on a subsidy they receive for retiree drug coverage.
And of course workers are going to take a hit as well:
AT&T also said Friday that it is looking into changing the health care benefits it offers because of the new law. Analysts say retirees could lose the prescription drug coverage provided by their former employers as a result of the overhaul.
Read more at the San Francisco Examiner:http://www.sfexaminer.com/opinion/blogs/beltway-confidential/health-care-bill-causes-att-to-take-1-billion-charge-cut-benefits.html#ixzz0jLA23HEj