In this article from Drudge Report, the authors begin to claim that the new health care reform may cause companies like AT&T to find ways to recover some of these new costs incurred by this reform. The shareholders of these large companies will possibly see a decline in share prices if the companies costs rise to much. Companies like AT&T have an obligation to shareholders to maintain or increase profits. These new costs will reduce profits without taking action.
The blog goes on to inform us that in the past companies like AT&T have been receiving subsidies from the government for providing drug coverage to their retirees. These subsidies will now be treated like income to the company and be taxable under the new health care reform. This is one of the largest ways to help pay for this health care reform. The White House feels that this only closes a loophole for these companies, however it will not prevent companies from eliminating or reducing benefits to retirees to recover some of these new costs.
The new coverage which will help many Americans who desperately need health care but at the same time may cause current and future retirees to pay for parts of health care that were previously a benefit for their years of service. Retirees who loose benefits may end up becoming dependent on the government to subsidize them in the future which will add the the cost of health care for the government.
It seems that solutions to these problems are not easy. The fallout from this may not be felt completely for some time. I don't have an answer to solve this problem and I don't think the government or these companies do either. I will say that I am concerned for those who had felt comfortable in their retirement after years of planning and are now afraid that they may not be very comfortable soon.
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