Crony Capitalism is a Feature (Not a Bug) of Obamacare

O c are cc

We have long asserted this. Obamacare is/was good for the insurance companies, the pharmaceutical companies, the drug stores, all sorts of large vested interests. The lobbyists for these interests wrote large pieces of the legislation.

Obamacare is a vehicle for cronyism. That is its nature. That is what makes Obamacare Obamacare.

(From Reason)

At first, Aetna denied that its move was connected to the Justice Department’s merger decision. Even in the most generous reading, this turns out not to be exactly true. AtThe Huffington Post, Jonathan Cohn and Jeffery Young have gotten their hands on a letter from Aetna’s CEO that critics seem to believe catches Aetna threatening the administration.

The correspondence has gotten Democrats very agitated, even though their policies are creating the problem. Even before the letter was uncovered, Sen. Elizabeth Warren (D-Mass.) and others lamented the rise of corporate power rather than the convoluted regulatory environment that fosters an unhealthy relationship between business interests and government power. Warren said, “The health of the American people should not be used as bargaining chips to force the government to bend to one giant company’s will.”

To be honest, although I have little doubt Aetna was hoping its position on the exchanges would help with the merger, the letter sounds less like extortion and more like a sensible decision that any accountable executives would make when their company is facing losses. The real outrage isn’t that insurers like Aetna are abandoning Obamacare, but that companies like Aetna likely participated in Obamacare for cronyistic reasons to begin with.

Click here for the article.