Obamacare Impacts AT&T by $1 Billion

Discussion in 'Politics' started by carpro, Mar 27, 2010.

  1. carpro

    carpro
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    http://www.businessweek.com/news/20...on-charge-on-health-care-reform-update1-.html

    AT&T to Book $1 Billion Cost on Health-Care Reform

    March 26 (Bloomberg) -- AT&T Inc. will book $1 billion in first-quarter costs related to the health-care law signed this week by President Barack Obama, the most of any U.S. company so far.

    A change in the tax treatment of Medicare subsidies triggered the non-cash expense, and the company will consider changes to the benefits it offers current and retired workers, Dallas-based AT&T said today in a regulatory filing.

    AT&T, the biggest U.S. phone company, joins Caterpillar Inc., AK Steel Holding Corp. and 3M Co. in recording non-cash expenses against earnings as a result of the law. Health-care costs may shave as much as $14 billion from U.S. corporate profits, according to an estimate by benefits consulting firm Towers Watson. AT&T employed about 281,000 people as of the end of January.

    “Companies like AT&T, that have large employee bases, are going to have higher health-care costs and, therefore, lower earnings unless they can negotiate something or offer less to their employees,” said Chris Larsen, an analyst at Piper Jaffray & Co. in New York, who rates AT&T shares “overweight” and doesn’t own any himself.
     
  2. matt wade

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    and the liberals shouted with glee! They love to hear that evil companies have less profits.
     
  3. carpro

    carpro
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    I wonder if they are also happy that employees will have less coverage and pay more for it?

    It was the inevitable result of the bill that passed, no matter how much Obama and democrats lied about it.
     
  4. Bob Alkire

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    From my reading of this, this bill went through for the poor, to bring down coverage so all will have the same coverage except for our elected folks in Washington DC. I think they hope this put health care out of reach for most places to offer it to their people and we will have to turn to the government for it.
     
  5. carpro

    carpro
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    There were many fools with good healthcare plans that believed Obama when he said their premiums wouldn't go up.

    It's going to be worse than they could imagine. Not only will the premiums go up, the coverage will go down.

    It won't take long for this program to start biting the hands of the fools that fed it.
     
  6. Winman

    Winman
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    Exactly. I was also discussing this with co-workers. I asked them how any insurance company could be forced to give up any limits on coverage (right now we are limited to 1 million dollars coverage) and not increase rates?

    And telling insurance companies they must insure someone with a pre-existing condition is lunacy. Imagine if you wrecked your car, then the next day walked into an insurance company and they were forced to sell you insurance to fix it. Do you think rates might go up?

    And these folks with pre-existing conditions are going to be in for a shock. They will be placed in a very high risk pool just as poor drivers are and pay outrageous rates. It's not the insurance companies fault, they have to do this.

    Folks don't get it, insurance companies are not in business to give all their money away. Insurance traditionally makes some of the lowest profits of any line of business, between 3-4 percent on average. That is a fact. They were never gouging people.
     
  7. Salty

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    Profits of Insurance companies


    Those who gouge are the lawyers - with the million dollar lawsuits - how do you think they can have all those dumb commercials on TV?

    Ok so Nancy Clumsy wins a 3.6 million dollar lawsuit. The lawyer makes a cool 1.2 million! It sure is worth his time isn't it! After the suit, the doctors insurance is raised substantially, some patients will now go to another doctor - due to the publicity - and the remaining patients get with with an increase in rates - very simple - its Economics 101
     
  8. Winman

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    Exactly. I take it a little personal as I was an insurance agent for many years and went to school for it. I knew years ago that insurance companies operate on a very small profit margin.

    From that article:

    Wow, a whole 3.4 percent! What greedy monsters! I actually feel bad, I give the girl a $5 tip for a $15 haircut. Her profit margin puts insurance companies to shame.

    Insurance companies are actually the victims. If you go to the hospital they give you every possible test they can think of, knowing you have insurance to pay for it. Drug companies can charge hundreds for a pill, you pay maybe a $15 co-pay and your insurance company has to pay the rest.

    And attorneys! Their lawsuits cause insurance premiums to increase. It is a fact that when Texas instituted malpractice reform that insurance premiums immediately dropped an average of 17% statewide. Why would the insurance companies drop their rates if they were so greedy as Obama and the Dems paint them?

    And who is the single biggest contributor to the Dems? Trial lawyers!
     
  9. Salty

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    PHP:
    Why would the insurance companies drop their 
    rates 
    if they were so greedy as Obama and the Dem's
     paint them
    ?

    Give em time, the libs will come up with some excuse


    PHP:
     If you go to the hospital they give you every possible 
    test they can think of
    knowing you have insurance to pay 
    for it
    But they also do it, in the event they are sued, so they can cover themselves, as well as the insurance company - either way...
     
  10. Bob Alkire

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    To do all the things the government is saying, will run up rates. Health like auto, one should buy the coverage they want or think they can afford. Look at what a couple percent of aids patients would do to put an insurance company out of business. They can't do much for long if they are paying out more than they are taking in, and that could happen or the price will have to go up even more than it has been.
     
  11. Winman

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    Bob, go to the thread I started called How many will do this? Healthcare

    Maybe this plan will be alright. I will cancel my insurance at work and save the money. If I get sick or have an accident I will call and (or have a family member) purchase insurance immediately. They will have to take me.

    Boy, the politicians who came up with this were real geniuses.
     
  12. Bob Alkire

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    Sounds good, but you know our backers of this bill might be as far off as they have been on income tax, SS, medicaid and medicare. They seem to underestimate the cost and what they will charged. But if they don't change anything go for it, I'm just to old to try.
    I like your humor.
     
  13. Robert Snow

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    Corporations like AT&T will no longer get to use the federal subside they not get twice. Presently the get the subside and also get a tax write-off. This tax loophole is being closed.
     
  14. Bob Alkire

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    Robert you could be correct, but I don't know what you are talking about. I had a business for years that was incorporationed. When business was a corporation I paid health care for self and workers with pretaxed money. After I sold the business and started another that I was the lone employee and wasn't a corporation I paid health care with after taxed money as anyone else buying health insurance on their own.
     

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