Health Insurance Stocks Soar On Baucus Deal

One of the things that gets obscured by the huge sums of money being spent by lobbyists to degrade, deride, and defuse legislation is that in reality, the big industries get what they want very cheaply.

Lawmakers already make use of so many systemic advantages when it comes time to defend their seats that a little bit of industry largess goes a long way. So they can afford to be generous, and they never ask for an additional cut. This is something that Ian Welsh at Open Left observes today:

...the [return on investment] on lobbying is astronomical. For example, the American Jobs Creation act earned corporations 82 billion. The cost in lobbying? 283 million. Return on investment? 22,000%

Over at Campaign Silo, Teddy Partridge looks at the kinds of returns involved in the health care reform arena:

News that Senator Max Baucus' Finance Committee deal on health care financing excluded a public option sent health insurance stocks soaring Tuesday.

Shares of U.S. health insurers rose broadly on Tuesday on hopes a health reform bill would not include a government-run option, which has drawn strong opposition from insurers who fear it would destroy the private marketplace.

The S&P Managed Health Care index of large U.S. health insurers closed 6.5 percent higher.

Aetna rose 12.6 percent, Coventry was up 12.7 percent and Cigna was 7.7 percent higher, all on the New York Stock Exchange. Centene rose 7.9 percent.

This is funny, because I am reliably informed that Max Baucus has concerns that government intervention in private markets could be a disaster for the country!

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Comments

[Dr. Sam]

Congress is for sell now--more than ever before. Obama campaigned against lobbyists in Washington. He should be speaking out more against it. Blue dogs? They call themselves "blue dogs." I prefer to call them blue and dogs, very corrupt and for sell to the highest bidder. MSNBC’s Dan Eggen report on this issue (July 31, 2009) sickens and tells us what is wrong with today's American Congress! Blue dogs and Mx baucus are “working hard,” not for the American people, but for the insurance industry and health industry lobbyists. Speaker Nancy Pelosi was right when she drew a line on the sand on the health care debate in her news conference of July 29, 2009. She called it as it is!!! Sometimes some of us wonder how often Democrats engage in acts of self-sabotage when they grab power. That seems to us it is what many of the so-called “blue dog” Democrats are so willing to do, including of course Max Baucus, the Chairman of the Finance Committee. They and Max Baucus seem so thoroghly committed to have it their way and to obstruct the progressive agenda and the ideas of two other relevant House committees. Given their deep ties to the Insurance Industry, in another profession, that would at the very least be called a conflict of interest. Democrats must never allow the blue dogs and Baucus and their Republican allies to torpeedo the progressive aganda! This is the time to stand up and fight!!!

[Harrier]

It has to include a govt run option

[spytheweb]

Without stupid republicans, insurance companies couldn't steal the weatlh of everyday Americans. This is like the drug bill Bush signed. I don't like the public option, i like universal single payer. The bill in works, won't work because it was tried in California and it died.

If this bill is signed i hope Obama changes it in his 2nd term into single payer.

Single payer is the most cost effective way to go, it cuts out those 120 million dollar golden parachutes for insurance CEO's retirements.

[truthkills09]

without profits....there will be no money for liberals to steal

[bosha]

Let's talk about stealing where were you for the last 8 years when Bush was in office ad crashed the whole system because the conservatives were stealing from anyone and everyone by any means they could?

[VS007]

Max Baucus should be checked out.

[hopefull252]

paid for you by lobbyist

Thank you.

[LeeCalif]

Remember Baucus, wherever he goes and whatever rock he crawls under. Grassley, as well.

[PhilipTaylor]

TRACK THE MONEY:

1. Corporations have excess ill-Gotten L00T to spend!

2. Congress needs L00T for Reelection Campaigns! It does NOT take Much Percantagee-wise

3. Corporations Buy F@V0RS and V0TES from Congress and the Corruption Spreads

4. Corporations Control Government causing an Oligarchy of the EL1TES!

5. M0NEY ALL FL0WS from Corporations to the Government - the SOURCE of BAD G0vernment!

[PhilipTaylor]

Another Big PAYDAY for the #1 Senator!

ISN'T it time to HAUL UP BAUCUS in FRONT of the Senate Ethics Committee!

In 2004 the House Ethics Committee unanimously admonished DeLay for his actions related to a 2002 energy bill.

A Committee memo stated that DeLay "created the appearance that donors were being provided with special access to Representative DeLay regarding the then-pending energy legislation."

NOW it is TIME for the SENATE ETHICS COMMITTEE to look at BAUCUS who "created the appearance that donors were being provided with special access to Senator BAUCUS regarding the NOW-pending Health Care legislation."

___________________

BAUCUS stands out for FLY FISHING with the Industry Executives!

Like DeLay stood out for Golfing with the O1L Executives!

[JackRusselTerrier]

Well said PT, but will the politicians snub Baucus or will they just compete for the almighty campaign dollars behind closed doors?

Just as the racket exist for no risk investing for Goldman Sachs etc., the same goes for the politicians.

If these corrupt politicians are voted out ( as they should be ) they will simply use the revolving door and continue to manipulate the system.

The next politician who takes their place will say what's needed to get elected, then play the same game. As we are clearly seeing today, both Democrats and Republicans are guilty of the same crimes concerning conflict of interest.

Only when the people revolt from these practices, will things really change. I give it one to three years for the sh!# to hit the fan.

Our government has a choice to make. Will they make the right choice or do their masters have something else in mind?

[maryjflyfree]

cosign

[maryjflyfree]

thank you ! we should take to the streets until his butt has been removed from office or all Americans have access to the same health care that he enjoys; whichever comes first!

[BabblingBrooks]

The stock market appears to operate inversely from the probability that Obama's health care plan and second stimulus bill will achieve passage. In other words, to help the stock market rise, Obama's plans must be thwarted!

[layman]

Baucus, a giant parasiste.

[blueskybigstar]

Insurance companies and banks should not be on the stock market. They are supposed to be institutions not subject to such types of fluctuations. FDR knew. Reinstate Glass Steagle.

[sueinmn]

Time to break these banks up and regulate. Too much under the same roof called a bank!

[Uosdwis]

Isn't there a conflict of interest here? Are Senators allowed to own stocks of companies they have a direct result upon in their committees??

[sueinmn]

Just as traders working the floor on WallStreet have 30 minute advance notice over others. Seems insider trading advantage for some but not all. Is there anything NOT CORRUPT TODAY?

[SimJack]

Looks to me like the tree of liberty could use a little refreshing.

[research]

It's the voters fault. Kucinich actually works for the people, but we were unable to look past the MSM ridicule, and vote our enlightened interests.

Obama, Clinton Rahm are all DLC.

Does anybody not know what the DLC is?

[Coastalthinker2]

I really hate to say this but many people in this country base their votes on appearance and image. Representative Dennis Kucinich definitely has repeatedly shown that he has the best interests of "we the people" in this country. Hopefully, he will run again for President in 2012 because President Obama has shown repeatedly where his allegiance is... and it isn't with "we the people". All of the "socialist" and "extremist" rhetoric voiced by the far right Republicans about President Obama is just ridiculous on so many levels and many people realize that now. As for the DLC (Democratic Leadership Council), anyone who equates themselves with this group is moderate- right in their philosophy. This never surprised me about Hillary Clinton since she was in her younger days a "goldwater girl".