For years, the American healthcare system has struggled, but one group seems to have benefited greatly: health insurance companies. Since the Affordable Care Act, commonly called Obamacare, these insurers have seen their stock prices soar, in some cases by as much as 1,000% over the past 15 years. Even some outlets that supported the law have called it a boon for the industry.
The political fight over extending Obamacare subsidies sheds light on who really benefits from the program. Recently, Democrats pushed hard to extend these subsidies, which were originally introduced as temporary help during the COVID-19 pandemic. But this push is about more than just helping people afford insurance. It’s about keeping hundreds of billions of taxpayer dollars flowing to insurers. Critics say this fight helped cause the longest government shutdown in U.S. history.
Money clearly plays a big role in this story. Health insurers have given far more campaign contributions to Democrats than Republicans. In the 2024 election cycle, they gave five times more to Kamala Harris than to Donald Trump. And back in 2018, the industry donated $63 million to Democrats compared to just $2.2 million for Republicans. This cash creates a cycle where politicians support policies that keep insurers profitable, and insurers continue funding their campaigns.
What’s striking is that the extra subsidies pushing up company profits were never meant to last. They were emergency measures during COVID-19. Now, Democrats and big insurance firms want to make them permanent. Some reports suggest insurers have even signed people up for plans without their knowledge to claim more government money. The system seems so big, they believe they can get away with these tactics.
The problems don’t stop there. Medicare Advantage plans, offered by insurers, are under federal scrutiny for potentially overbilling as much as $2 trillion in the next eight years. Big companies like UnitedHealthcare are facing investigations. UnitedHealth is also known to have donated an eye-popping $9 billion to AARP, helping ensure they stay in good favor. Many wonder how different things might be if that money was spent directly on patient care.
Despite all this, Democrats continue pushing hard to keep the subsidies flowing. But it’s hurting their popularity. Senate Minority Leader Chuck Schumer recently became the most unpopular national figure in decades. If Republicans agree to keep the subsidies, some suggest insurers should pay a fair share in return. After all, these companies are sitting on huge profits.
This ongoing battle over healthcare money shows how the system often benefits big business more than the people it’s supposed to serve. Whether any real change is coming remains to be seen.
