Bonanza For Insurance Companies

It is not often that progressives and the Wall Street Journal are in complete agreement, but sometimes the facts are plain for everyone to see. The Wall Street Journal is running a story today about what a massive boon to the for-profit health insurance corporations Baucus's health care bill would be.

The health-system overhaul proposed by Sen. Max Baucus would create millions of new insurance customers without subjecting health insurers to government-run competition -- two key victories for the much-maligned industry.

The math here is very simple:
Individual Mandate (millions of new customers) – Competition (public option) = Huge Profits

The health insurance companies got the individual mandate they wanted, even though Obama campaigned against it. They also scored a huge victory when Baucus did not include the a public option in his bill, something Obama did campaign on.

The WSJ story concludes with:

The outcome is still uncertain. "I think there's only a limited chance that this could get worse [for the insurance industry]," said Sheryl Skolnick, who follows health-care services at financial-services firm Pali Capital Inc. "When all is said and done, the health plans should say a prayer of thanks to the Senate Finance Committee."

I couldn't have said it better myself.