AT&T To Take 1 BILLION Dollar Hit Because Of Healthcare

[Patranus]

AT&T Inc. plans to take a noncash $1 billion charge in the first quarter in anticipating the impact of changes brought by the nation's health-care overhaul.

http://online.wsj.com/article/SB10001424052748704100604575145981713658608.html

I thought this bill was going to help business and create jobs.....

 

[TruePaige]

Wow. Great thread.

NO link and a big title!

 

[DaveSimmons]

FYI their costs in 2009 were 5.5 billion so if the charge ends up being an accurate reflection of costs (which they are just guessing at for now) then this is an 18% increase in costs.

The free intro for WSJ doesn't tell me if this increase is because they aren't currently providing insurance to all employees, or are only providing sub-standard insurance.

Source:
http://www.docstoc.com/docs/5973281/2009-SWOT-Analysis-of-AT/
"Annual healthcare costs for AT&T is 5.5 billion dollars (Svensson, 2009)."

 

[jpeyton]

The reason it's so large is because their current employee health care coverage is as pathetic as their national 3G coverage.

 

[MJinZ]

Hehhe... and their net cost from tax benefits and write-offs? Probably in the single digit percents.

 

[her209]

The reason it's so large is because their current employee health care coverage is as pathetic as their national 3G coverage.

 

[Narmer]

I guess the sensational thread title was...sensational?

 

[Zebo]

http://online.wsj.com/article/SB10001424052748704100604575145981713658608.html

I thought this bill was going to help business and create jobs.....

This HC bill will prove a boon for rest of the world. That's okay a bad day fishing is better than good day working anyway.

 

[PokerGuy]

Well, with the economy red hot and booming, we really needed a way to slow things down, the unemployment rate was getting too low. Oh, wait......

Yup, democrats at it again.

 

[Gonad the Barbarian]

What were projections if no reform was passed and things just marched along as they were? God damn, reform gets passed and folks forget premiums were getting jacked 20% a year beforehand.

 

[Hacp]

What were projections if no reform was passed and things just marched along as they were? God damn, reform gets passed and folks forget premiums were getting jacked 20% a year beforehand.

What would the projections be? AT&T would not be losing the 1 billion! DURH!

 

[Slew Foot]

Im sure theyll just raise the price on their phone plans to make up the difference.

Inflation is the endgame that will save your debt ridden butt.

 

[sandorski]

Well, with the economy red hot and booming, we really needed a way to slow things down, the unemployment rate was getting too low. Oh, wait......

Yup, democrats at it again.

Ever wonder why it won't be in full swing until 2014?

 

[jpeyton]

Im sure theyll just raise the price on their phone plans to make up the difference.

Because they've never raised prices on their phone plans prior to health care reform?

 

[heyheybooboo]

AT&T To Take 1 BILLION Dollar Hit Because Of Healthcare

They can afford it. They only made $13 billion last year.

(Oh. By the way. AT&T is reconciling several different health plans that cover different classes of employees at various levels of cost and benefits. Funny how the CEO didn't mention that ... )




--

 

[Hacp]

AT&T To Take 1 BILLION Dollar Hit Because Of Healthcare

They can afford it. They only made $13 billion last year.

(Oh. By the way. AT&T is reconciling several different health plans that cover different classes of employees at various levels of cost and benefits. Funny how the CEO didn't mention that ... )

--

Ya a 1 billion tax. I'm sure they won't be moving any jobs to China and India anytime soon..

 

[jpeyton]

Ya a 1 billion tax. I'm sure they won't be moving any jobs to China and India anytime soon..

Because they didn't outsource jobs before health care reform passed?

 

[Hacp]

Because they didn't outsource jobs before health care reform passed?

Now they'll outsource more!

 

[BlahBlahYouToo]

Because they've never raised prices on their phone plans prior to health care reform?

what's your point?
i'm not familiar with the history of AT&T and their rates, but this will only accelerate it and increase it at a greater %.

 

[jpeyton]

what's your point?
i'm not familiar with the history of AT&T and their rates, but this will only accelerate it and increase it at a greater %.

So anytime AT&T threatens to raise their rates, we should let them write national policy?

Umm...no.

 

[PokerGuy]

Ever wonder why it won't be in full swing until 2014?

Yes, that's to try and make sure the population is not aware of the scam and the scope of the impending disaster until well after the 2012 and 2014 elections.

 

[IGBT]

employers will reduce their liability to obama no care by downsizing. Insurance co.will double rates this January to break even.

 

[jpeyton]

Insurance co.will double rates this January to break even.

Link?

 

[werepossum]

employers will reduce their liability to obama no care by downsizing. Insurance co.will double rates this January to break even.

All true except for timing - rates will probably go up 20% - 30% per year. Congress (at least assuming the Dems retain control after November) will then act to prevent health insurance rates from being raised, probably while mandating more freebies. More and more our public policy is based on the assumption that there is a free lunch out there, if we can only get government to say it is so.

 

[ultimatebob]

Now they'll outsource more!

They were going to outsource more anyway. When you're looking for short term profit boosters to meet your quarterly numbers, it's hard to pass up getting customer service people that get $4 an hour instead $14 an hour.

Of course, you eventually end up getting some of the lowest customer service ratings in the industry by pulling stunts like that, but CEO's usually aren't that forward thinking.