AT&T will take $1B non-cash charge for health care

March 26, 2010
In this March 23, 2010 photo, AT&T President and CEO Randall Stephenson delivers a keynote speech during the CTIA wireless show, in Las Vegas. AT&T said Friday, March 26, it will take a $1 billion non-cash charge in the first quarter related to the health care overhaul.(AP Photo/Isaac Brekken)

(AP) -- AT&T Inc. said Friday it will take a $1 billion non-cash charge in the first quarter related to the health care overhaul.

AT&T's charge is the largest announced 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.

AT&T said the charge is to reflect the change of the tax treatment of Medicare subsidies. Companies say the health care overhaul will make a subsidy that companies receive for retiree drug coverage taxable in 2011.

AT&T also said it is looking into changing the health care benefits it offers to active and retired workers because of the legislation. Analysts say retirees could lose the prescription drug coverage provided by their former employers.

AT&T rival Verizon Communications Inc. was among 10 companies that sent a letter to congressional leaders in December warning that their costs would increase with the changes. Verizon did not immediately return a phone call seeking comment.

AT&T shares climbed 7 cents to $26.22 in afternoon trading.

Explore further: Health overhaul draws groups' competing demands

0 shares

Related Stories

Emerging $80B deal would help fund Medicare drugs

June 20, 2009

(AP) -- Medicare beneficiaries would receive better drug coverage and a portion of President Barack Obama's health care legislation would be paid for under an emerging agreement involving the pharmaceutical industry, the ...

Obama announces agreement with drug companies

June 22, 2009

(AP) -- President Barack Obama on Monday welcomed the pharmaceutical industry's agreement to help close a gap in Medicare's drug coverage, calling the pact a step forward in the push for overhaul of the nation's health care ...

Retirees' health-care benefits at risk, study warns

August 18, 2009

A nearly two-decade trend that is stripping away employer-provided health-care benefits for retirees in private business will likely continue and could soon hit an even deeper pool of government retirees, new research by ...

Poll shows less fear on health care overhaul

February 24, 2010

(AP) -- With President Barack Obama's health care overhaul in limbo, Americans' fears about its effect on them eased in January, according to a poll released as the president tries to revive sweeping Democratic legislation.

Recommended for you

Interactive tool lifts veil on the cost of nuclear energy

August 24, 2015

Despite the ever-changing landscape of energy economics, subject to the influence of new technologies and geopolitics, a new tool promises to root discussions about the cost of nuclear energy in hard evidence rather than ...

Team creates functional ultrathin solar cells

August 27, 2015

(Phys.org)—A team of researchers with Johannes Kepler University Linz in Austria has developed an ultrathin solar cell for use in lightweight and flexible applications. In their paper published in the journal Nature Materials, ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.