Cronyism and Coercion

Published June 30, 2014 12:00am ET



After the upset of House majority leader Eric Cantor at the hands of GOP primary voters, many congressional Republicans may be looking for ways to show they are listening to their constituents. One way they can do so is to take renewed aim at Obamacare.

Obamacare’s risk-corridor program is serving as a slush fund for President Obama. He is using that fund to placate his insurance company allies whom he double-crossed. After Obama declared last fall that insurance policies banned by Obamacare would be unbanned by presidential proclamation, insurers were understandably alarmed. Obama’s lawless decree meant that millions of people who already had insurance—and who were likely to be healthier on the whole than those who didn’t—would not be forced into the Obamacare exchanges after all. His decree, therefore, likely made the exchanges’ risk pools even worse.

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