A worker at Caterpillar’s plant in Mossville, Ill. (José Moré/Chicago Tribune)
Dow Jones Newswires | Caterpillar Inc. said the health-care
overhaul legislation being considered by the U.S. House of Representatives would increase the company’s health-care costs by more than $100 million in the first year alone.
In a letter Thursday to House Speaker Nancy Pelosi (D-Calif.) and House Republican Leader John Boehner of Ohio, Caterpillar urged lawmakers to vote against the plan “because of the substantial cost burdens it would place on our shareholders, employees and retirees.”
Caterpillar, the world’s largest construction machinery manufacturer by sales, said it’s particularly opposed to provisions in the bill that would expand Medicare taxes and mandate insurance coverage. The legislation would require nearly all companies to provide health insurance for their employees or face large fines.
The Peoria-based company said these provisions would increase its insurance costs by at least 20 percent, or more than $100 million, just in the first year of the health-care overhaul program.
“We can ill-afford cost increases that place us at a disadvantage versus our global competitors,” said the letter signed by Gregory Folley, vice president and chief human resources officer of Caterpillar. “We are disappointed that efforts at reform have not addressed the cost concerns we’ve raised throughout the year.”
Business executives have long complained that the options offered for covering 32 million uninsured Americans would result in higher insurance costs for those employers that already provide coverage. Opponents have stepped up their attacks in recent days as the House moves closer toward a vote on the Senate version of the health-care legislation.
A letter Thursday to President Barack Obama and members of Congress signed by more than 130 economists predicted the legislation would discourage companies from hiring more workers and would cause reduced hours and wages for those already employed.
Caterpillar noted that the company supports efforts to increase the quality and the value of health care for patients as well as lower costs for employer-sponsored insurance coverage.
“Unfortunately, neither the current legislation in the House and Senate, nor the president’s proposal, meets these goals,” the letter said.
Previous articles on Caterpillar from the Chicago Breaking Business blog and the Tribune Archives.
CAT like most major industrial equipment makers is most likely self insured, meaning that the day to day costs, colds, injuries, minor surguries etc they pay direct to the HC providers -through a 3rd party admin. More serious HC costs like cancer care, surguries etc. are covered by an insurance program that kicks in at some predetermined level.
Like all ‘insurance programs’ CAT will no longer be able to say ’sorry’ about pre existing conditions – 1st for kids then adults. They cannot cap care at $2 mil lifetime. Thus transfering the costs to the rest of us insured health care seekers.
CAT instead of complaining about the costs to provice insurance might have been a proponent of a Gov plan that would have been like the plans the their overseas competition enjoys. Just a thought
I AM A SHAREHOLDER IN CATERPILLAR AND DEERE & CO. AND I WANT TO CONTINUE GETTING MY DIVIDENDS.
THESE COMPANIES ARE GOING TO BE HIT HARD WITH BY THIS HEALTH CARE REFORM EXPENSE
.
LETS START THE LAYOFFS AND HEALTH CARE COST NOW SO THAT BY THIS REFORM KICKS IN AT CATERPILLAR AND DEERE WE WILL HAVE ALREADY STARTED MAKING INROADS TO OFFSET THE INCOME THEY WILL LOSE AS THE RESULT OF THIS -REFORM-.
Yeah get better work hu? I bet CAT puts a pretty dam nice roof over your head for u to work under.
CASE IH aint losin much r they???!
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.
Government big enough to supply everything you need is big enough to take everything you have … The course of history shows that as a government grows, liberty decreases.
A quote from Thomas Jefferson. I believe it says it all.
Was the government to prescribe to us our medicine and diet, our bodies would be in such keeping as our souls are now.
Another from Thomas Jefferson. What did he know that our leaders of today seem not to know or are ignoring.
You sound stupid.
Thanks for your cut/paste republican talking points from Faux News. Where were you when your Christian Criminal president and his crime family were imposing their scorched earth policies and capitalistic predatory policies and consitution breaking policies for the last 8 years? Where were you when your Christian President George Bush was gutting the whole economic infrastructure and illegally invading Iraq to set up his criminal friends with no-bid billion dollar oil contracts with the Iraqi people’s oil?
YOU WERE NOWHERE TO BE FOUND BECAUSE GEORGE BUSH ISN’T BLACK AND YOU ARE AN IGNORANT SHEEPLIKE FOOL WHO WATCHES THE RIGHT WING PROPOGANDA NEWS(FAUX NEWS) because you’re the typical religious right that is indifferent to death, destruction and criminal behavior, unless it’s for manifest destiny or whatever else leads you to you misguided justifications for all these horrible human behaviors in the name of gawd!
GODLESS AMERICA!!!!!
Hrmm that was weird, my comment got eaten. Anyway I wanted to say that it’s decent to be aware that somebody else also mentioned that as I had trouble finding the same info elsewhere. This was the first spot that told me the answer. Thanks.
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Best, There is a lot of competition in the heavy equipment industry from Japan, South Korea, Europe, and China. Good luck trying to raise prices. Very Well Put!
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