Tags: US | Prudential | Health | Care

Prudential to Take $100 Million Healthcare Charge

Tuesday, 30 Mar 2010 07:16 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Insurer Prudential Financial Inc. said Monday that it will take a $100 million charge in the first quarter in relation to the recent healthcare overhaul legislation.

The life insurance and annuities provider said in a regulatory filing that it will take the charge against earnings in the first quarter.

Prudential joins a growing list of companies that have said they will take accounting charges because of the healthcare bills. AT&T said last week it would take a $1 billion charge in the first quarter. AK Steel Corp., 3M Co., Caterpillar Inc., Deere & Co. and Valero Energy have also said they would take smaller charges.

Prudential said in a filing with the Securities and Exchange Commission that the health bill signed into law by President Barack Obama last week and a companion measure he is expected to sign Tuesday will reduce its tax deduction for retiree healthcare costs beginning in 2013.

Companies that provide prescription drug benefits for retirees have been getting subsidies covering 28 percent of eligible costs but could deduct everything they spent on the benefits — including the federal money — from their taxable income.

However, beginning in 2013, the healthcare overhaul will allow them to only deduct the amount of their own money that they spent. Prudential said it had taken a charge to reflect the increase in taxes it expects because of the changes.

The insurer earned $3.41 billion on revenue of $27.7 billion last year, when it was helped by a gain on the sale of its stake in a brokerage joint venture.

Shares of Prudential rose 70 cents to close at $59.91.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Labor Board Orders CNN to Rehire 100 Fired Employees

Tuesday, 16 Sep 2014 11:10 AM

The National Labor Relations Board has ordered CNN to rehire 100 workers and compensate 200 others for a labor dispute t . . .

US Bolstering Cyber Defense With New Corps: NSA Chief

Tuesday, 16 Sep 2014 11:07 AM

The US military is building a new cyber defense corps that can be used to protect the nation and possibly for offensive  . . .

VA Secretary Announces Further Reforms

Tuesday, 16 Sep 2014 10:35 AM

Veterans Affairs Secretary Bob McDonald said that he plans to raise the pay for VA doctors and nurses as part of the eff . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved