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| | bernie :: article :: U.S. Drug Subsidy Benefits Employers (Site not responding. Last check: ) |
 | | The subsidy won't be paid for another two years, but the Financial Accounting Standards Board of Norwalk, Conn., gave permission Wednesday for companies to book the value of their anticipated government payments in 2003 financial statements, if they believe they can accurately predict the effect of the subsidy. |
 | | The subsidy will be significant at companies with thousands of retirees ages 65 or older, because prescription-drug costs make up a large part of the expenses that employers incur for seniors under their retiree medical plans. |
 | | So if an employer and a retiree each pay $1,000 toward the retiree's medical costs, the employer's subsidy is calculated on the full $2,000, bringing the company a total subsidy of $490, rather than the $210 that it would get if it received a subsidy only on its share. |
| bernie.house.gov /documents/articles/20040108175625.asp (1027 words) |
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