As we have noted, one of the industries most riddled with crony capitalism is healthcare. This is no surprise, since free prices and normal competition based on price and service have been largely eliminated.
One feature of today’s crony capitalist system is that you cannot buy health insurance outside your state. Only insurance companies approved by state regulators are available. So if you live in a very high cost state such as Massachusetts or New York, you cannot just reach out and buy your insurance in Arizona—heaven forbid that we have national competition. It would probably spell the end of the local, often bloated oligopolies.
Now we learn, from the New York Times article below, that federal government, working with the Obamacare statute, intends to set up some national policies you can buy. But please note, they won’t allow national competition. No, instead they will choose “at least two” favorite companies to offer the national policies. So we will get crony companies selected by crony “public servants” who will get all the business. These crony companies will really just be surrogates for the government, but the nice thing about it is that they can donate to political campaigns as much as they want. Somehow it seems likely that their donations will set records since all this new national business will depend on keeping the goodwill of the administration.