Caterpillar Voices Concerns Against Revamped Healthcare Plan
Caterpillar Voices Concerns Against Revamped Healthcare Plan

Caterpillar Inc., the heavy-equipment manufacturer, sent in a last moment salvo against the revamped health-care plan presented by the Democrats, stressing that the Medicare adjustments in the legislation, in addition to the insurance mandates, would end up increasing the firm's costs by a whopping $100 Million in its first year of becoming being approved.

The concerns sent to the House Democratic and Republican leaders in a letter, right ahead of an expected Sunday vote on the bill, is just another proof of how big employers are split on the developments and clauses.

The employees at the Caterpillar plant were addressed by President Obama last February.

Caterpillar has raised concerns that the proposed revamp of the health-care system would end up increasing the company's cost of health-care of about 20% in the first-year itself, mainly on the back of the initiative eliminating all the subsidies for the companies that cover medicine benefits for the retirees.

Caterpillar, which is currently providing insurance to over 150,000 employees, retirees and dependents, stressed that it could "ill-afford cost increases that place us at a disadvantage versus our global competitors".

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