Major health insurance companies own nearly $4.5 billion worth of stock in tobacco companies, according to a Harvard University study. It kinda makes sense: health insurers know tobacco sickens people, and so as long as people are smoking, why not profit from the killer? It's what David Himmelstein, a co-author of the study, calls "the combined taxidermist and veterinarian approach: either way you get your dog back."
The largest tobacco investor on the list, the 160-year old Prudential company with branches in the US and the UK, has more than $1.5 billion invested in tobacco stocks. The runner-up was Toronto-based Sun Life Financial, which apparently holds over $1 billion in Philip Morris (Altria) and other tobacco stocks. In total, seven companies that sell life, health, disability, or long-term care insurance, have major holdings in tobacco stock.
Why is it a big deal? "If you own a billion dollars
, then you don't want to see it go down," says Himmelstein, "You are less likely to join anti-tobacco coalitions, endorse anti-tobacco legislation, basically, anything most health companies would want to participate in."
Sun Life Financial denies that they hold any tobacco stock, a claim Himmelstein delicately called a lie.
It's just another thing to keep in mind this summer as Congress debates whether we can continue trusting our private health insurers to look out for our best interests.
http://consumerist.com/5281026/health-insurers-own-tobacco-stocks-worth-nearly-45-billion
Smoke 'em if you got 'em. (Congressmen that is.)
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