The latest addition to the mounting list of U. S. companies that have been hit by the new health care law is AT&T Inc. The company stated on Friday that it would incur $1 billion in non-cash expenses in the first quarter of the year.

The announcement made by AT&T has been the largest amount reported till now. On comparison, Deere & Co. stated that it will be shelling out a one-time expense of $150 million and Caterpillar Inc. reported a first quarter charge of $100 million.

Among the many changes that have come about since its enactment, the health care law removed a tax deduction that companies used to cut for drug-benefit programs for their retired employees.

An excerpt from a government filing, AT&T wrote, “As a result of this legislation, including the additional tax burden, AT&T will be evaluating prospective changes to the active and retiree healthcare benefits offered by the company”.

Democrats are hopeful that the new health law will gain popularity in coming times, pointing out that considerable new subsidies for business are also a part of it.