According to the CBO report on the health care bill Harry Reid sent to the floor of the Senate, the opt-out public option would have taken in $134 billion in revenue from 2014 to 2019 (see page 5 of the report).
That $134 billion, or more, will likely now go to private insurance companies. As such, why aren't the insurance companies paying the 44 Senators who said they would filibuster a public option (all 40 Republicans, plus Landrieu, Lieberman, Lincoln and Ben Nelson) an appropriate finder's fee for the massive amount of revenue they will generate for those companies?
I did some poking around looking for industry standard on finder's fees. Something around 3% of the deal seems to be normal:
from an investment banking perspective, 3% of value has long been a thumb rule used by M&A advisors. It may go up to much higher (~10% even) depending on how important the the organization views this deal to its future; complexity and expertise provided around jurisdictions, tax law, IP, funding and other factors.
This is certainly a find of major, long-term value to the insurance companies, so perhaps something more than a 3% finder's fee would be warranted. But hey, we are talking public officials here, and don't want to raise a whiff of corruption, so let's be modest and keep it at 3%.
3% of $134 billion is $4.02 billion. Divided 44 ways, that comes out to nearly $91.4 million per Senator ($91,363,636.36, to be precise). Quite a windfall for those Senators.
However, it would appear that the insurance industry has only contributed just under $11.8 million to all federal candidates so far in 2009. It will have contributed far less to each of the 44 Senators that just made them hundreds of billions.
What a bunch of chumps these Senators are. They go and make hundreds of billions of dollars for the insurance industry, and don't even bother to collect an appropriate finder's fee. Some believers in the free market, they are.
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