April 1, 2010 / 9:36 PM / 10 years ago

UPDATE 1-Verizon sees $970 million healthcare charge

* 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)

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