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Health Care Update

On March 23rd, soon after President Obama signed into law the Patient Protection and Affordable Care Act, Verizon's Executive Vice-President of Human Resources, Marc Reed sent an email to all Verizon employees.  This email speaks in general about the difficulties of Verizon to gauge the precise impact on the Company, including all employees.  The email also states that they believe Verizon's costs will increase in the short term.  One of the reasons stated speaks of a 40% excise tax on what has been called "cadillac plans", which would begin in 2018.  This tax would apply to employees or retirees when the Company paid premium is 25K for a family plan.  This does not apply for employees or retirees at this time.

After the email was sent to employees, Congressman Henry Waxman (Chair of the Energy and Commerce Committee), sent a letter to Verizon CEO Ivan Seidenberg (along with the CEO's of John Deere, Caterpillar, and AT&T) to appear before them to explain why Verizon believes what they sent in the email.  The Committee will meet on April 21, 2010 at 10:00am.  

As you can understand, we will be following the hearing and reporting thereafter.  If you would like to read the letter sent to the CEO's of the 4 companies, click the link below.

Letter

UPDATE April 16, 2010

The Sub-Committee meeting scheduled for April 21st has been cancelled.  Chairman Henry Waxman issues a statement saying the companies now believe the overhaul could actually ease their costs, if implemented properly.  We are hoping that the same Vice-President of Verizon will issue a new email telling their employees of their new outlook on the Health Care law?  If any new information becomes available, we will post on our site.