Early consequences of the Health Care Bill
It didn’t take long for the impact of the Bill to be recognized. A few companies have filed their required financial statements with the SEC. These aren’t just “scare tactic” announcements. From the Wall Street Journal article:
U.S. accounting laws also require businesses to immediately restate their earnings in light of the higher tax burden on their long-term retiree health liabilities.
3M Company (NYSE: MMM) said today that it expects to record a one-time non-cash charge of $85 to $90 million after tax, or approximately 12 cents per share, in the first quarter of 2010, resulting from the recently enacted Patient Protection and Affordable Care Act, including modifications made in the Health Care and Education Reconciliation Act of 2010 passed by Congress on March 25, 2010.
Other companies report:
… about $1 billion in the first quarter of 2010 to reflect the impact of a change in the tax treatment of the Medicare Part D subsidy under the health care reform law.
AK Steel (one of the country’s largest steel producers):
… a non-cash charge of about $31 million in the first quarter of 2010 resulting from the new health care law.
“The impact of the tax [on medical devices], we estimate, will be roughly $150 million to $200 million on Medtronic annually beginning in 2013,…”
Deere said it expects its expenses to rise by around $150 million on an after-tax basis, mainly in the second quarter, as a result of the legislation.
… first-quarter earnings will be hit with a $100 million after-tax charge under tax law changes attached to the new health care reform legislation.