“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.
AT&T previously received a tax-free benefit from the government to subsidize health-care costs for retirees, who would otherwise be on a Medicare Part D plan. Under the new bill, AT&T will no longer be able to deduct that subsidy.
“As a result of this legislation, including the additional tax burden, AT&T will be evaluating prospective changes to the active and retiree health-care benefits offered by the company,” the carrier said in the filing.
A simple but effective economic lesson for Obama and the Democrats but at the expense of the working class. Most others would not have made this same mistake.
Of course that's the plan. Expand Medicare coverage and underfund it even more. The costs then shift to companies and insurance buying citizens, effectively a tax increase. It becomes cheaper to receive the subsidy and go on Medicare and viola, everyone is dependent on Medicaid.
The really vicious twist here though is that as more people get on the government plan (Medicare), it remains underfunded. So doctors, hospitals, and pharmas stop innovating and investing because they aren't getting paid. They stop providing goods and services and those they do are sub par and can't keep up with demand. The whole world suffers because until now, everyone turned to us when their system couldn't provide. Very shortly, there will be nowhere else to go.