Insurance Space

The insurance industry has long been associated with health. Some companies offer incentives to purchase fresh vegetables or other wholesome food.

These two industries stand in sharp contrast to each other. Now, researchers are finding out that the two industries are in partnership. For years, the insurance companies have been investing in fast food corporations.

Research by Wesley Boyd of Harvard Medical School and Cambridge Health Alliance in Massachusetts indicates that fast food corporations received investments from insurance companies. Corporate giants from McDonalds, to Arby’s and Pizza Hut are among the companies with a large influx of insurance industry dollars.

Ohio universities, schools and cities will get $9 million from a giant insurance company accused of conspiring with its rivals to rig prices, state Attorney General Richard Cordray announced yesterday.

The state has settled a 2007 lawsuit against American International Group, which grew to become the world’s largest insurer before it was vilified for allegedly cheating investors and policy holders over the past decade. The company received a massive federal bailout in September 2008.

Ohio’s lawsuit accused AIG of colluding with Marsh & McLennan Co. and other insurers to set artificially high commercial-casualty premiums. Ohio settled a securities-fraud case against Marsh & McLennan for $400 million last year. The state still has a securities-fraud case pending against AIG.

To hear President Obama tell it, insurance companies are forcing up the cost of everyone’s health coverage. The solution: Whatever health care reform plan that actually makes it out of Congress.

The concepts in the House and Senate versions seem clear, but the final details aren’t. President Obama, however, says the bills’ concepts for regulating the insurance companies will make coverage more affordable.

Reality will likely be another story. For one thing, the final details must be passed by both houses of Congress, where many members have taken large campaign contributions from the very insurance companies that they supposedly will regulate.