Democrats use threats to protect new Health Care Law.

Looks like the Dems bullying isn't reserved for their own members when it comes to passing and protecting the largest entitlement spending bill in history.

Byron York of the Washington Examiner reports:

Democrats threaten companies hit hard by health care bill

Rep. Henry Waxman, chairman of the House Committee on Energy and Commerce, has summoned some of the nation's top executives to Capitol Hill to defend their assessment that the new national health care reform law will cost their companies hundreds of millions of dollars in health insurance expenses. Waxman is also demanding that the executives give lawmakers internal company documents related to health care finances -- a move one committee Republican describes as "an attempt to intimidate and silence opponents of the Democrats' flawed health care reform legislation."

On Thursday and Friday, the companies -- so far, they include AT&T, Verizon, Caterpillar, Deere, Valero Energy, AK Steel and 3M -- said a tax provision in the new health care law will make it far more expensive to provide prescription drug coverage to their retired employees. Now, both retirees and current employees of those companies are wondering whether the new law could mean reduced or canceled benefits for them in the future.


The news is an embarrassment for Democrats. As President Obama and congressional leaders tout the purported benefits of the new health care law, some of the nation's biggest companies are saying it will mean higher costs and fewer benefits -- not exactly what Democrats want to hear in the days after their historic victory.


So Waxman has ordered the executives to explain themselves at an April 21 hearing before the Energy and Commerce Committee's investigative subcommittee. That subcommittee just happens to be chaired by Rep. Bart Stupak, the Michigan Democrat who held out his vote on health care reform until a few hours before final passage on March 21, giving the bill's opponents the unfounded hope that he might vote against it

The Washington Examiner

Karl Denninger adds his two cents worth at the Market Ticker Analysis with his article:

So The Government Doesn't Like Consequences

One of the "cute tricks" passed with Medicare Part "D" (by George W. Bush) was a "tax credit" for corporations who provided health care to retirees from their firms. This too was a distortion - an intentional one put into that bill to "buy off" some key Reps and Senators to insure passage of Medicare Part "D" (the biggest boondoggle and scam in the history of the Republic - until President Obama signed this piece of crap legislation.)


But this legislation repeals that little ditty in the Medicare Part "D" law.

Remember, the Democrat talking points were that this bill would "lower your costs" and "make health care more affordable." It was also called a "jobs bill" - that is, that this bill would create jobs.

Within hours corporations announced intent to recognize the repeal of this exemption - via 8Ks filed with the SEC. This was not a surprise - Caterpillar had warned the Administration, as had other firms, that the bill as written would increase their costs and that they would have to recognize those forward costs.

Securities laws require firms to disclose material changes when they are realized - which in this case means when the bill was signed into law, since they had already analyzed the bill and it's impact. Legally, these companies are obligated to file the 8Ks disclosing these charges.

The Administration and Democrats generally ignored these folks when they warned of this impact before the bill was passed, of course, claiming they were part of some "Vast Right-Wing Conspiracy." Oh wait - that was Clinton. Ok, ok, so Pelosi said she had to pass this bill so we could know what was in it. (And no, that's not an exaggeration - she really did say that!)

Well, the corporations weren't lying, and now the 8Ks are flying. Caterpillar has announced an intent to take a $100 million non-cash charge, John Deer $150 million, and AT&T a whopping $1 billion.

Government's response?

Threats.

Read the rest at Market Ticker Analysis