Health Care Reform Costing Big Bucks?

Wow, have you heard that some really big U.S. companies are filing SEC documents stating that the newly enacted health care reform is costing them big bucks?

AT&T says it is booking $1Billion in costs; Caterpillar $150 Million, AK Steel $31 Million! That sounds to me like the health care reform is really not doing what politicians said it would do, namely LOWER health care costs for employers. So what’s going on?

Well, if you’ve taken college level accounting (and know a thing a two about these booking costs you would know what the news isn’t telling you.

The “costs” that these companies are “booking” are tax-free government subsidy payments that the companies receive to help these companies pay the cost of health care for their employees. The health care reform has taken away these tax-free government subsidy payments to these companies. In other words, these companies are no longer receiving these HUGE tax-free government checks that they used to get.

It’s NOT that the companies are having to PAY OUT in cash the $1Billion or $150 Million or $31 Million, it’s that these companies are no longer getting government checks, they cannot “book” these checks as tax-free income anymore. The checks issued to these companies by the government are really your tax dollars.

Don’t you feel sorry for them?

The Tea Party loves to vilify the federal government, but have the Partiers stopped Teabagging long enough to realize that maybe the private sector is poorly managed, greedy, and inept as well? Enron, MCI WorldComm, AIG, Arthur Andersen, Global Crossing, Tyco, Qwest,PG&E, Bernie Madoff, etc.