Goodrich Corp. (GR: Quote) said it expects to incur a one-time charge against its first quarter 2010 results of approximately $10 million, or $0.08 per share, due to the recently-passed U.S. health care reform legislation.
The expected charge relates to the elimination of tax deductions available to companies that provide prescription drug coverage to retirees. The Medicare Modernization Act of 2003 (MMA) expanded Medicare to include prescription drug coverage through a plan known as Medicare Part D. Under the MMA, employers that provide prescription drug coverage to retirees that equals or exceeds the benefit provided under Medicare Part D are entitled to a subsidy of 28% of the cost of the coverage.
by RTT Staff Writer
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