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<Paul.Gaeto@cat.com>
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cc "Kathryn Himes" <HIMES_KATHRYN_S@cat.com>, "Jerry
11/20/200908:01 AM Duggan" <Duggan_Jerry_W@cat.com>
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Subject Fw: Healthcare Reform
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Greg:
Please see Jerry's note below summarizing the impact on Caterpillar of the
House version of the Healthcare Reform Bill. The most significant issue is
the elimination of the tax exemption on the Part D subsidy. Corporate
Accounting has advised that we would have a one-time write-off of a tax
deferred asset of up to $110 million when the legislation is passed. The
annual impact going forward would be around $8 million. The other versions
of healthcare reform legislation being circulated contain a similar
provision.
Katie and Jerry are putting together a letter for you to send to key
members of Congress. We will be reviewing it in the next few days. Please
let me know if you want to meet to discuss in advance.
Paul
Original Message
From: Jerry W. Duggan
Sent: 11/19/2009 04:19 PM CST
To: Kathryn Himes; Valerie Johnson
Cc: Paul Gaeto
SUbject: Healthcare Reform
Here is the latest update on impact of the various provisions of the House
Bill:
In the "payor play" mandate, guidance has been that the 8% would apply to
Box 1 W2 wages. In 2008, total Box 1 W2 wages (excluding Solar, Progress
Rail and Anchor Coupling) for Caterpillar were approximately $3.5b. 8% of
this total would be $280 million. Our current healthcare spend for active
employees is approx $305m so we would need to give serious consideration to
this option.
Please let me know any comments you have on the above summary.
Regards,
Jerry Duggan
Healthcare Benefits
Human Services Division
(309) 675-4676 AB4360