The Los Angeles Times (4/1, Healey) reports, "Perhaps the very first effect of the new healthcare reform law was to cause a number of major corporations to restate their earnings -- dramatically so." For instance, "AT&T announced a $1-billion charge. Deere & Co. and Caterpillar said they would take charges of $150 million and $100 million, respectively," while "Boeing cut $150 million from its first-quarter earnings." Although "some critics of the bill have pointed to the numbers as evidence of yet more of the bill's hidden costs to industry and the economy," some experts "predicted that the restatements would have minimal impact on company valuations, despite the fact that they would add up to a whopping $4.5 billion in lower earnings industry-wide."

        Similarly, CNNMoney.com (4/1, Rooney) reports, "A growing number of major US corporations are expecting to take tax charges in the first quarter related to the recently enacted healthcare reform law." Still, "while some companies are fretting about the charges, defenders of the law say the new rules merely close a loophole that allowed a double-dip benefit."

        Meanwhile, NPR (4/1, Zarroli) says, "Although President Obama's newly minted healthcare overhaul doesn't take effect for some time, its impact is already being felt by some American companies. They're warning that they stand to lose millions of dollars because of a single passage in the law." Notably, "companies such as AT&T, Caterpillar and John Deere say the end of a tax break on prescription drugs may cause them to have to drop employees' drug coverage altogether."

        Companies, Unions Say Two Million Could Lose Insurance Under Healthcare Reform. AFP (4/1, Dupont) reports the "sweeping reform of the US healthcare system could exact a high price on some businesses and deprive two million Americans of health insurance, industry and union leaders say." Last Friday, "telecommunications giant AT&T said it would take a one-billion-dollar charge in the first quarter of 2010 to cover changes in US healthcare law." AT&T "and other firms have pointed out the financial impact of the reform, which includes the elimination of a tax break to companies providing medication coverage to their retired employees."

        WSJournal Criticizes Health Insurance Industry For Supporting Reform Law. In an editorial, the Wall Street Journal (4/1, subscription required) says the healthcare industry is now throwing its financial support to efforts to promote the healthcare legislation because it has an interest in the implementation of the law. The Journal notes this is akin to paying protection money, because Democrats in government now have authority to control key parts of the industry such as setting insurance rates.

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