Add Verizon to the list of companies who say they will incur a $970,000,000 expense because of ObamaCare. Remember, Obama said that this wouldn’t cost businesses money or jobs. The mis-truths just keep flowing. That’s a hefty charge for a company, especially in these tough economic times when businesses are laying off workers. Forget job creation.
From Bloomberg:
Verizon Communications Inc., the second-largest U.S. phone company, became the latest company to record a cost related to the U.S. health-care overhaul, saying it will incur a $970 million expense.
The one-time, non-cash cost will be taken in the first quarter, New York-based Verizon said late today in a regulatory filing.
Verizon follows AT&T Inc., the biggest U.S. carrier, Deere & Co., Caterpillar Inc. and other companies in disclosing similar expenses after losing a tax benefit for retiree plans. The costs may reduce corporate profits by as much as $14 billion as companies account for the impact of the health-care reforms, according to benefits consulting firm Towers Watson.
“While it is a non-cash charge, it does reflect real value destruction, based on expected cash flows over the life of the company,” said Jonathan Schildkraut, an analyst at Jefferies & Co. in New York.
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