The health care overhaul will cost U.S. companies billions and make them more likely to drop prescription drug coverage for retirees because of a change in how the government subsidizes those benefits.
Figuring out what it will mean for retirees will take longer, but analysts said as many as 2 million could lose the prescription drug coverage provided by their former employers, leaving them to enroll in Medicare’s program.
American industrial companies that are struggling to compete globally against companies with much lower labor costs are particularly likely to eventually drop retiree coverage, said Gene Imhoff, an accounting professor at the University of Michigan.
Under the 2003 law, companies could deduct the entire amount they spent on the drug benefits from their taxable income — including the government subsidy, an average of $665 per retiree.
The health care law signed by President Barack Obama on Tuesday prohibits companies from writing off the subsidies starting in 2011, meaning they will no longer be able to deduct them from their taxable income.
Answer by grlygrlz2 at 8:25 AM on Mar. 27, 2010
Answer by LoriKeet at 8:26 AM on Mar. 27, 2010
Answer by HistoryMamaX3 at 8:27 AM on Mar. 27, 2010
Consumers Energy, a Michigan gas and electric company with 2.9 million customers, said it will not take a big first-quarter charge because, like most utility companies, it can try to recover the added costs from its customers through rate hikes.
Answer by grlygrlz2 at 8:28 AM on Mar. 27, 2010
I agree with LoriKeet. They won't care until it hits them personally and even then only a few would admit as much. Most will just go the Martyr route and say that they aren't 'selfish' enough to 'hoard' their money. They learned how to 'share' when they were little.
Answer by QuinnMae at 8:37 AM on Mar. 27, 2010
What do you think all of these supporters are going to say when all of this gets sifted through and revealed now that the bill has passed and, as Pelosi said, we get to see that is in the bill? I think people around the world will hear the collective, "OH NO, WAIT A MINUTE! I DIDN'T THINK IT WAS GOING TO MEAN THAT!!!!!!" We have no clue just how invasive and controlling this thing really is.
Answer by jesse123456 at 8:51 AM on Mar. 27, 2010
Answer by Alexsmom04 at 9:22 AM on Mar. 27, 2010
Answer by sati769leigh at 9:28 AM on Mar. 27, 2010
Why do you think so many people were against this bill? Why do you think all the politicians made sure they would be exempt? The almighty Oblahblah does not have the best interests of the people in mind. He's a control freak! This is only the tip of the iceberg...we've got a lot more "surprises" in store for us. His term can't be up fast enough as far as I'm concerned! We need to fire the whole evil lot of them! As a smart person on FB said, "The only polls that matter are the ones in November."
Answer by Anonymous at 9:45 AM on Mar. 27, 2010
Sati...I REALLY think you need to find a new place to play. You seem to not be able to full comprehend the point of this site and this area. I know there are some very liberal sites that will cater to ONLY agreeing with you and your ideal. Otherwise YOU are the one that needs to STFU.
Answer by momof030404 at 10:06 AM on Mar. 27, 2010