Originally Posted by
Atypical
Do you know why they had to take that charge? Because the government had been paying them a fee to provide government money to their employees for a benefit. That is absurd corporate welfare. The govt has now decided to take only the fee they were paying away, which should have never been given in the first place. Read the details below.
The 2003 Medicare prescription drug bill, still in effect, 7 The government even goes one step further and subsidizes (read: pays for) a whopping 28% of those prescription drug benefits in the first place, to make prescription drug benefits as affordable as possible for the companies. The companies get both a 28% discount and a nice tax break, all to encourage them to provide prescription drug coverage.
But there's a loophole in the law big enough to drive a Chevy Suburban through. These companies get to write off the entirety of their prescription medication plan, even though they're actually only paying for 72% of it. The new health-care bill simply closes that loophole, and says that companies can still deduct every penny they pay on prescription drug benefits from their taxes--but only the money they've paid, not the 28% that the government hands them. That's where the billion dollars comes from: AT&T is no longer allowed to deduct things they didn't pay for in the first place.
So what happens from here? AT&T loses a billion dollars it didn't have any right to keep to begin with, and what do they do?
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.
In other words, due to losing free money, AT&T will cut benefits for retirees. It's not the health-care bill that's resulting in retirees losing benefits--it's AT&T cutting corners in the worst possible place.
The actual situation here is not easy to explain. It's much easier to just say, "This health-care bill will force AT&T to cut benefits for retirees." It's a nice soundbite, right? The only problem is, it's just not true.
You said, But hey, they can afford it, right? That suggests you think I am indifferent to their spending their money (and hurting shareholders) because I want the government to win. If you read the details above, you should now realize that AT&T was screwing the goverment and soon its employees. You prefer that instead? And as a stockholder are you upset that the free ride is over? I bet you are because of your comment. And you obviously didn't know the details. Just pissed at the government "attacking a corporation".
Is your mother on Medicare? Are they refusing service for some reason? I would appreciate the details.
Insurance in exceptional cases? Not sure what you mean. It's used whenever it's needed.
As far as goverment's role, I think healthcare is government's role. Isn't a healthy population beneficial to the country? We are the only industrialized country that doesn't offer a health program without a profit motive connected to it. Are you in favor of saying to the sick, infirmed, (perhaps your mother) screw em? It's their problem, not mine. I'm healthy.