Obamacare Is Crack to Crony Capitalist Insurance Companies
Bill Quick

Jonah Goldberg: Insurers show no backbone as White House keeps moving ACA goalposts | The Portland Press Herald / Maine Sunday Telegram

Jonah Goldberg: Insurers show no backbone as White House keeps moving ACA goalposts

Though they’ve been blamed, shamed and pushed around, industry leaders have remained mum.

When will the insurers revolt?

Look.  Crony capitalist insurance companies have been convinced that Obamacare is, for them, the government-mandated honey pot to end all honey pots, a literally endless gusher of money and profit for them.

Naturally, they are loath to abandon the dream.  They’ll fight to the end to salvage it.

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Bill Quick

About Bill Quick

I am a small-l libertarian. My primary concern is to increase individual liberty as much as possible in the face of statist efforts to restrict it from both the right and the left. If I had to sum up my beliefs as concisely as possible, I would say, "Stay out of my wallet and my bedroom," "your liberty stops at my nose," and "don't tread on me." I will believe that things are taking a turn for the better in America when married gays are able to, and do, maintain large arsenals of automatic weapons, and tax collectors are, and do, not.

Comments

Obamacare Is Crack to Crony Capitalist Insurance Companies — 5 Comments

  1. “They’ll fight to the end to salvage it.”

    Most of them have reached the point where they can’t do anything else.

    When a company shifts its business strategy to crony capitalism, it loses managers who are talented at building or running a business any other way.

    Eventually, even if the company wanted to become more competitive in a free market environment, they don’t have the internal talent to do it. Their institutional policies and culture are all optimized for crony capitalism and the political machinations that it requires.

    If Obamacare is repealed (and I’ve been thinking along the same lines as Bill for 2015 – unlikely but far from impossible), then some of these companies are going to die. They simply will not be able to shift direction fast enough. Their culture and “leadership” won’t allow it. (Their deaths will be in the news as “strategic mergers” and other euphemisms.)

    Crony capitalism stunts any business that adopts it. They may make money for a while, but they sacrifice the adaptability that enables businesses to thrive long term in a constantly changing economy.

  2. Weren’t the insurance companies in on the formation of the scam, back in 2009 and ’10? Unless I’m imagining that, I have no sympathy. Lie down with a son of a bitch and wake up with fleas, as they say.

    • Yes, indeed, and I have zero sympathy for any jerking around they have to endure. As long as *they* (and their stockholders) are the ones losing money.

      But you know it won’t turn out that way. Policy-holders that have the ability to pay more will get screwed, and any necessary balance to keep these guys in the black will be supplied via some sort of bailout, which means we all pay for it.

      • I’ve been wondering why nobody in the wonk community seems to be picking up on this.

        A lot of those predicting doom for Obamacare base their predictions on the idea that there will be a “death spiral,” which would essentially mean that the mix of the insured would not be skewed enough toward the healthy to allow the program to survive without the government having to subsidize it heavily.

        But the means for those subsidies are already baked into the Obamacare cake, and anybody who thinks that either Obama or the rest of the Democrats would hesitate for an instant before tossing trillions of taxes and new debt down that rathole just doesn’t understand how the Democrats operate.

        After all, remember their ultimate goal is a single (governmeent) payer system of socialized medicine.

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