Big Insurance Companies Were Always Behind Obamacare

Don’t believe the lie that big insurance companies opposed Obamacare and then got won over.


You may have noticed a couple of days ago some stories about how the insurance companies are now defending the Affordable Care Act. The Washing Examiner ran a story, “Insurers ‘will strenuously resist Republican efforts to dismantle’ Obamacare.”

Remember how much President Obama and the Democrats portrayed Obamacare as a broadside to the special interests, especially the health insurers?

Nancy Pelosi said of the insurance companies, “They are the villains in this.” Obama pitched the bill as an improvement on a system that “works well for the insurance industry, but it doesn’t always work well for you.”


As is typical of Obamacare, the language used to pitch the law has not proven true in fact.

The story then quotes from the New York Times, “Health Care Law Recasts Insurers as Obama Allies.”

As Americans shop in the health insurance marketplace for a second year, President is depending more than ever on the insurance companies that five years ago he accused of padding profits and canceling coverage for the sick.

Those same insurers have long viewed government as an unreliable business partner that imposed taxes, fees and countless regulations and had the power to cut payment rates and cap profit margins.

But since the Affordable Care Act was enacted in 2010, the relationship between the Obama administration and insurers has evolved into a powerful, mutually beneficial partnership that has been a boon to the nation’s largest private health plans and led to a profitable surge in their Medicaid enrollment.

[See also, “Mainstream Media Admitting: Health Insurance Premiums about to Blast Off.”]

Here’s the thing. It is excellent that people are now realizing that the big insurance companies (not all of them: “the nation’s largest private health plans.”) are in bed with Obama for Obamacare. But the New York Times assertion is still a lie and a cover-up.

Do you really think that the big insurance companies are not surprised to find that they are profiting from Obamacare and don’t want Republicans to repeal it?

Not a chance.

This was the plan all along. Obama had to have massive support to be a viable candidate for the Presidency. There is no way that the health insurance companies were pleasantly surprised by their new profit margins.

In fact, if there is any truth to the NYT story, it lies in the fact that the health insurance industry consists in competing companies of various sizes. Some may have, indeed, opposed Obamacare–the smaller ones. But other, bigger companies knew this would help them beat out their smaller competition.

The alliance between the Obama White House and the health insurance companies is not something new. It is the reason we got the Affordable Care Act in the first place.