NorthWest Florida Republican

Thanks, in part, to Congressman Allen Boyd (D), many large businesses are taking hits to their bottom line.

Caterpillar, one of the places President Obama said this Health Care bill would help, is going to have to take a $100 million charge. Along with John Deere for nearly $150 million(via HotAir). AT&T just announced it would have to take a $1 billion charge and cut benefits.

The telecommunications giant AT&T said on Friday that it would take a $1 billion noncash accounting charge in the first quarter because of the health care overhaul and might cut benefits it offers. – New York Times

I don’t know how anyone can think this will help. It is going to cost thousands their jobs in layoffs and many retirees some benefits. Current employees will probably be affected as well if these companies can swing it by the Unions in control.

Changes to benefits are unlikely to take effect immediately. Rather, the issue would most likely come up as part of contract negotiations between the company and unions representing its employees and retirees. AT&T is the largest private employer of union workers in the United States.

Candice Johnson, a spokeswoman for the Communications Workers of America, which represents more than 160,000 AT&T workers, said these employees had contracts in place until 2012. An agreement covering retirees also runs through 2012.

But that’s “Ok” for Democrats like Boyd. Their entire goal is to move people to a single payer government system. Which is why some of the penalties are absurd.

Retirees who get some of their Medicare prescriptions taken care of will probably be losing their employer coverage. Companies like AT&T will not want to keep taking a hit to their bottom line without adjusting for it somewhere. And removing the problems by dumping the plans that are costing them money would be the first move. Which the Health care does with the Retirees.

AT&T said Friday that the charge reflected 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.

AT&T said that it was also looking into changing the health care benefits it offered because of the law. Analysts say retirees could lose the prescription drug coverage provided by their former employers as a result of the overhaul.

Some companies may opt out of providing health care altogether. The penalties they receive would be cheaper than providing health insurance. They could pay the penalty for the government to provide the insurance for them.