Life and health insurance companies are greedy, for-profit enterprises that do not care about public health, according to Harvard researchers writing in the American Journal of Public Health.

Why such scorn for the insurance industry? The authors of the study found that U.S., Canadian and European-based insurance firms hold at least $1.88 billion of investments in fast-food companies.

Although there is normally nothing wrong with investing in fast food companies, the busy bodies at Harvard are irritated because the health care legislation just enacted in the U.S. essentially guarantees business for these insurance companies, and they are invested in the industry that is supposedly making us unhealthy.

"These data raise questions about the opening of vast new markets for private insurers at public expense, as is poised to happen throughout the United States as a result of the recent health care overhaul," says lead author Dr. Arun Mohan.

"Our data illustrate the extent to which the insurance industry seeks to turn a profit above all else," says Dr. Wesley Boyd, senior author of the study. "Safeguarding people's health and well-being take a back seat to making money."

Among the largest owners of fast-food stock are U.S.-based Prudential Financial, Northwestern Mutual and Massachusetts Mutual Life Insurance Company, and European-based ING.

U.S.-based Northwestern Mutual and Massachusetts Mutual Life Insurance Company both offer life insurance as well as disability and long-term care insurance. Northwestern Mutual owns $422.2 million of fast-food stock, with $318.1 million of McDonald's. Mass Mutual owns $366.5 million of fast-food stock, including $267.2 in McDonald's.

Holland-based ING, an investment firm that also offers life and disability insurance, has total fast-food holdings of $406.1 million, including $12.3 million in Jack in the Box, $311 million in McDonald's, and $82.1 million in Yum! Brands (owner of Pizza Hut, KFC and Taco Bell) stock.

New Jersey-based Prudential Financial Inc. sells life insurance and long-term disability coverage. With total fast-food holdings of $355.5 million, Prudential Financial owns $197.2 of stock in McDonald's and also has significant stakes in Burger King, Jack-in-the-Box, and Yum! Brands.

"The health bill just enacted in Washington will likely expand the reach of the insurance industry," the researchers write. "...If insurers are to play a greater part in the health care delivery system they ought to be held to a higher standard of corporate responsibility."

That is certainly the way to correct the problem--if we are going to have federally funded health insurance. The other solution is to just eliminate federally funded health insurance.




Citation: Arun V. Mohan et al., 'Life and Health Insurance Industry Investments in Fast Food', AJPH, April 15, 2010; doi:10.2105/AJPH.2009.178020