Obamacare and Crony Capitalism: Who Stands to Make Big Money.


Obamacare has made a lot of Americans very angry. The stories of canceled policies and expensive premiums continue to flow freely; they will get worse as time goes on.

Not everyone is upset. Some people benefit greatly from Obamacare, and are probably very happy with it thus far. Two obvious groups are old folks and people with preexisting conditions. Old folks are happy because the Federal Government is now attempting to force younger people to subsidize the typically more expensive health insurance for senior citizens. People with preexisting conditions are happy because now they do not have to suffer consequences for previously refusing to buy health insurance. Both of these groups are being subsidized by the Federal Government at the expense of everyone else. Younger and healthier people will no longer receive significant discounts for being lower-risk. They are being forced into paying prices on-par with higher risk groups.

The good feelings stretch further than that. Obamacare supporters dare not admit it, but perhaps the most ecstatic groups of all are the Insurance Companies themselves. The Federal Government has mandated that all Americans citizens must purchase their product. How could they not be happy? This is as if the Feds mandated that all Americans must eat fast food for lunch, every day. The fast food companies would be overjoyed; they’d make billions. Similarly, the Insurance Companies stand to make billions from the enforcement of Obamacare. The Feds have assured the Insurance Companies that they will be subsidized for any losses, and bailed out by taxpayers if necessary.  Stock values for the large insurance companies have already made huge gains within the past 2 years because of this. It is interesting, because Obama Democrats are consistently calling out the “evil insurance industry” as the main opposition to Obamacare. The Insurance Industry is merely the controlled opposition. Obama Democrats and the Insurance Industry are in full agreement over Obamacare, make no mistake.

Pharmaceutical companies stand to make serious bank, as well. The Pharmaceutical industry was an enthusiastic supporter of Obamacare. The Pharmaceutical Researchers and Manufacturers of America group spent millions lobbying and campaigning for Obamacare before it was passed. This is because the attempt to shove millions of uninsured Americans into insurance means a potential increase of millions in their customer base. In the short-term, the Pharmaceutical companies may lose out in profits due to new regulations; in the long-term, they stand to reap record profits as millions of new customers demand their product. In conjunction with that, consider this basic economic law: “If the price is lowered, more will be demanded.” Obamacare will lower the price of obtaining prescription drugs medications, mostly for seniors. This means that the demand for prescription drugs will correspondingly rise. Obama Democrats trumpet this as a victory for the people against the big drug companies, but that is untrue; the Federal Government will be subsidizing their losses. Taxpayers and unsubsidized policyholders will be filling in the gaps for the drug companies.

Hospitals and Medical Technology companies will also profit greatly from Obamacare, for similar reasons as the above. Obamacare will increase their customer base by millions. The demand for their services will skyrocket. They will make huge amounts of money at the expense of those not being actively subsidized. Overall, almost every sector of the healthcare industry is enthralled by the passage of Obamacare, and stands to reap enormous profits in the coming years. Their mega profits will be due entirely to the economics of the badge and the gun, as the Feds attempt to force people into buying insurance; “Get out your wallet, boy“. Of course, one thing that none of these companies probably counted on islow youth enrollment in Obamacare. If not enough young people enroll, premiums for insurance will go up. As I have discussed previously, this could send Obamacare into a death spiral. In this instance, these industries could stand to lose some money. It is not clear to me how much they might lose, but it could certainly turn out to be a nasty situation for companies heavily invested into the rollout of Obamacare.

Wherever the Federal Government pledges to regulate business, always recall this mantra: “Follow the money“. Ask these two questions: 1) Where did the campaign money for the regulation come from, and 2) where is the money going after the regulation is passed? In the case of Obamacare, the campaign money came from most of the Medical Industry as an investment of-sorts, to assure big money coming their way later. This is the Medical-Industrial Complex at work. This is Crony Capitalism at it’s finest.

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One Comment on “Obamacare and Crony Capitalism: Who Stands to Make Big Money.”

  1. Matthew January 19, 2014 at 1:21 pm #

    Interesting Thome! I put a claim through the veteran’s affairs office after leaving the service. Does that mean that this will benefit me if and when they give me a disability rating through the VA? Because then I’ll have insurance through them. I’m not exactly sure how that’s going to work and I don’t know if you have the answer. Interesting article none the less!

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