Last week, former Congressman and current Senate candidate John Hostettler tweaked Evan Bayh by sarcastically predicting that Bayh wouldn’t vote for ObamaCare because it would endanger his wife’s access to lucrative stock options as a member of the board of directors of health insurance giant WellPoint.
Well, Hostettler was wrong and he was right. He was wrong in that Bayh did very much vote for the ObamaCare legislation. But Hostettler was correct in that Bayh was not going to let his family’s finances suffer from the passage of ObamaCare.
What Hostettler didn’t count on was that the legislation itself–damaging as it might be to Indiana’s state finances, as much as it might expand government, as much as it allows Federal tax dollars to fund abortions, and for all of its other myriad faults–still contained benefits for WellPoint and thus for the Bayh family.
Evan Bayh didn’t need to worry about voting against his family when he voted for the bill. Bayh didn’t get anything for Hoosiers in the sell-out-a-thon that came in the mad rush to get this abomination passed, but some things ended up in the bill that benefit WellPoint and thus the Bayh family’s finances.
Evan Bayh has his priorities, after all, and it’s pretty clear that big insurers like WellPoint (and his family’s bank account) are way up there on that priority list. Ordinary Hoosiers, not so much.
As lefty blog FiveThirtyEight notes, the greatest benefit to health insurance companies comes from the insurance mandate contained within the legislation. Everybody must now buy insurance, and the legislation provides $400 billion in subsidies to private insurers to help make that happen. It also expands the customer base for companies like Wellpoint by almost ten percent.
Over the course of the next ten years, the Senate’s bill directs about $447 billion in public subsidies to people for the purchase of private health insurance. (This is in addition to another $400 billion or so in subsidies for the expansion of Medicaid).
Another way to look at this is that the Senate’s bill will add about 17 million nonelderly members to the private insurance companies’ enrollment relative to the baseline case, according to the CBO. As about 177 million nonelderly Americans currently have private insurance, this represents a 9.6 percent increase in their customer base.
WellPoint, as one of the largest insurers in America, is going to get a big slice of that $400 billion pie. It’s also going to see its customer base swell by around ten percent as many people who don’t currently have insurance (for whatever reason) are forced to buy it from companies like WellPoint.
Read more after the leap.






