* Charge is on a one-time non-cash basis
* Involving tax deduction elimination for retiree coverage
NEW YORK, April 1 (Reuters) - Verizon Communications Inc (VZ.N) said on Thursday it expects to record a charge of $970 million related to the new U.S. healthcare reform law.
The second biggest U.S. telephone company said the one-time non-cash charge stems from the elimination of an income tax deduction related to providing retirees with prescription drug coverage.
Verizon — expected by analysts to report 2010 revenue of $108.53 billion — was the latest in a stream of big US companies to announce costs related to the Obama administration’s overhaul of the healthcare system.
The week before its bigger rival AT&T Inc (T.N) said it expects to take a charge of $1 billion as a result of the reforms. (Reporting by Sinead Carew; editing by Andre Grenon)