Caterpillar Says Health Care Overhaul Would Increase Company's Insurance Costs 20% (CAT)

3/19/2010-Dow Jones reported Friday that Caterpillar CAT claims the health-care overhaul legislation being considered by the U.S. House would increase the company's health care costs by more than $100 million in the first year alone.

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 company said these provisions would increase its insurance costs by at least 20%, or more than $100 million, just in the first year of the health-care overhaul program.

In a letter to House Speaker Nancy Pelosi (D., Calif.) and House Republican Leader John Boehner of Ohio, Gregory Folley, vice president and chief human resources officer of Caterpillar, said "We can ill-afford cost increases that place us at a disadvantage versus our global competitors. We are disappointed that efforts at reform have not addressed the cost concerns we've raised throughout the year."

Write to Chip Brian at cbrian@tradethetrend.com

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