New Health Care Law Continues to Show Signs of Hurting the Economy

Another Company Reports $100 Million Loss From Health Care Reform As Medical Device Manufacturers And Small Businesses Brace For Impact
PRUDENTIAL: HEALTH CARE LAW WILL COST THEM $100 MILLION
“Insurer Prudential Financial Inc. Said Monday That It Will Take A $100 Million Charge In The First Quarter In Relation To The Recent Health Care 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 To Take $100M Health Care Charge In 1Q,” The Associated Press, 3/30/10)

“Prudential Joins A Growing List Of Companies That Have Said They Will Take Accounting Charges Because Of The Health Care 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 To Take $100M Health Care Charge In 1Q,” The Associated Press, 3/30/10)

VIRGINIA MEDICAL DEVICE DISTRIBUTOR EXPECTS HIGHER COSTS
“The Health-Care Reform Bill Signed By President Obama Last Week Brings With It New Excise Taxes On The Medical Device And Pharmaceutical Industries.” (“Health-Care Reform Brings New Taxes,” Richmond BizSense, 3/29/10)

“Wayne Sale, The Owner Of A Henrico-Based Medical Supply Distributor Health First Who Heads Up A National Trade Group That Opposes The Tax, Says He Expects Manufacturers To Pass The Cost To Him.” (“Health-Care Reform Brings New Taxes,” Richmond BizSense, 3/29/10)

SALE: “It Directly Affects Me Because My Manufacturers Have To Take It On To The Bottom Line … Now They Will Sell Me What They Sell For $25 For $28 To Make Up The Difference.” (“Health-Care Reform Brings New Taxes,” Richmond BizSense, 3/29/10)

“LARGE TAX ON… LOWER AND MIDDLE CLASS WOMEN”
“Tucked Away In The Federal Health Care Reform Legislation Is What Many Say Is An Unfair Tax On Women. It’s Being Called The Tanning Tax, a 10 percent tax on tanning salon services that’s set to start in July. The government says the tax will generate $2.7 billion over 10 years.” (“Tanning Salons Upset Over 10 Percent Tax On Services,” WSAV NBC [Savannah, GA], 3/29/10)

“‘At First I Thought It Was A Joke, Because I Thought Surely They’re Not Going To Impose Such A Double Digit, Large Tax On… Lower And Middle Class Women,’ Said Shannah Lane, Owner Of Tan-Tastic Tanning.” (“Tanning Salons Upset Over 10 Percent Tax On Services,” WSAV NBC [Savannah, GA], 3/29/10)

“Owners Of Salons Such As Siren Tan In West Des Moines Said Are Not Happy About It. Congress will be collecting an extra 10 percent tax on indoor tanning starting July 1. The plan is to raise $2.7 billion during the next 10 years. In part, it will be used to pay for health risks blamed on too much tanning.” (“Tanning Tax Burns Salon Owners,” KCCI [Des Moines, IA], 3/29/10)

“‘I Think It's Sad The Government Comes In And Tells My Customers They Are Going To Be Charged More If They Chose To Look Good,’ Said Jody Wilson, Owner Of Siren Tan.” (“Tanning Tax Burns Salon Owners,” KCCI [Des Moines, IA], 3/29/10)

“Marcy DeVries Bought Grand Rapids' Westside Sun Spa A Few Months Ago, Which Finally Fulfilled Her Lifelong Dream Of Owning Her Own Salon.” (“10 Percent Tanning Tax To Start July 1,” WOOD-NBC [Grand Rapids, MI], 3/29/10)

DEVRIES: “We're Just Surviving Right Now … It's Going To Affect Us As Business Owners Because We'll Take The Hit Because We Have To Lower Our Prices Again To Keep Our Customers.” (“10 Percent Tanning Tax To Start July 1,” WOOD-NBC [Grand Rapids, MI], 3/29/10)

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Tags: government health care, economy, Prudential
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