Some GOP lawmakers are making a big profit from their party’s healthcare reform bill designed to repeal and replace Obamacare. According to a recent report, some Republicans bought health industry stocks before the U.S. House of Representatives passed Trumpcare.
Suspicious Stock Purchases in UnitedHealth
For instance, Rep. Mike Conaway and his wife added UnitedHealth stocks to their portfolio via two large purchases on March 24. The acquisition was worth $30,000 at the time. It is worth noting that the pair bought the stock the day before Conaway’s colleagues at the House Rules Committee gave the green light to the new legislation.
According to the Intercept, there was a boost in health industry stocks along with health insurance stock as the GOP was inching closer to repealing Obamacare. Under the new legislation, customer regulation would be loosened while huge tax cuts would be offered to the healthcare industry. By scraping some of the consumer legislation, insurance firms will be allowed to deny coverage to patients they consider to be too costly such as those with pre-existing conditions.
Since Mar. 24, UnitedHealth shares jumped 7%, but this isn’t an isolated case.
Sen. James Inhofe bought up to $100,000 in UnitedHealth stock. The senator said that the purchase was made by his broker without consulting him first. However, the purchase is incredibly well timed, which suggests the senator had inside information.
For ordinary shareholders, it is extremely risky to purchase and sell individual stocks, unless they have access to insider knowledge. Members of Congress resorting to such investment instruments can only amplify the appearance of corruption in the public’s eye.
Congressman Chris Collins (R-NY) has made a major investment in the biotech firm called Innate Immunotherapeutic. According to people familiar with the matter, he was heard telling his colleagues in the U.S. House that they would make a “big profit” if they got in early. Other House Republicans confirmed that the lawmaker’s recommendation concerning the company was “inappropriate” and “constant.”
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