While many health insurance executives are good republicans who dislike parts of Obama's healthcare bill, they are not in favor of Romney repealing it. The new law will require many young, healthy people to purchase healthcare, which will more than cover the costs of requiring health insurers to cover anyone who applies regardless of their health.
"A recent PricewaterhouseCoopers study estimated the new markets would be worth $50 billion to $60 billion in premiums in 2014, and as much as $230 billion annually within seven years."
This example illustrates Stigler's capture theory which we discussed in class. The capture theory states that an industry actively seeks, designs, and operates regulation for its own benefit. Health insurance companies are doing exactly this in regards to the new regulations. While they may not openly say it, the insurance industry is doing whatever possible to keep Obama care because they have billions of dollars of revenue to gain from these regulations. At the same time, the industry is lobbying to remove certain parts of the bill which does impose higher costs on them.
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