General Electric (NYSE: GE) Expects Little Change from Health Care Reform Bill

General Electric Co (NYSE: GE) said that it does not anticipate taking a charge tied to changes in the tax treatment of subsidies from Medicare in the health-care law which was signed by President Obama on Tuesday.

G.E. spokeswoman Anne Eisele said that the company does not see any “material effect” from the law and will not likely take a charge.

Many U.S. companies including AT&T Inc., Caterpillar Inc. and AK Steel Holding Corp. said this week they are recording non-cash expenses against earnings as a result of the new law.

Many companies, including General Electric had received a tax-free benefit from the government to subsidize its health-care costs for retirees, who would have otherwise had to buy a prescription drug plan from insurance companies through Medicare Part D.

Since General Electric contracted the administration of its plan to a third-party in 2009, it no longer qualified for the subsidy and did not account for the direct benefit starting in 2011, according to a report from Business Week.

Other companies such as AT&T said that they would be taking the charges because they will no longer be receiving the tax benefit under the new health care law.

General Electric received a $83 million benefit for helping pay for its retirees Medicare Part D prescription drug benefit plans in 2008 and 2009. The company had previously expected to receive about $70 million in 2010 and $5 million for each year after that.

General Electric had about 220,000 retirees under its health and life insurance plans at the end of 2009, according to a regulatory filing.