2015-08-16 - 10:19 a.m.
OK, so I finally saw "Capitalism: A Love Story." Too busy with my own capitalist adventures in the poker realm in 2009 to see it back then I guess. Anyway, there's something I still can't figure out.
In the movie, Moore interviews a lady whose husband died of cancer. His employer took out five (5!) million (!) dollars worth of life insurance, under two policies on this dude. Now think about that. The person who will need the money when she loses the breadwinner and father of her children...if she went to an insurance agent and tried to buy life insurance for even $500,000 on a guy who had cancer, they'd laugh her out of the office. If she did get an agent to sell her insurance, presumably by paying a kickback to issue the policy, then both she and that agent could be chased down on fraud charges. For sure she wouldn't be collecting any five million dollars.
So how can it be legal for somebody's employer to take out life insurance on somebody who had cancer? The Walmart thing was almost as mysterious. OK, Walmart took out a bit of insurance on almost everybody. But it's almost like Moore suspected, but couldn't say or prove, that they knew this lady's asthma was more serious than perhaps she knew herself. Because it sounded like they were making money by briefly hiring high risk young woman for a few months -- (the woman worked there 18 months before deciding to stay home with her kid) -- and getting insurance on them and basically just playing a math game (or hell, I don't know, sacrificing a voodoo chicken) that she'll die. So the husband ends up with $100K in medical bills because the hospital "thoughtfully" kept her "alive" in a coma so everybody could say good-bye (& they could charge more money) and meanwhile Walmart gets $81,000. I mean if Walmart had given the family the 81K to pay her hospital bills that would be one thing. But they were just gambling that she would die. Hoping for it. Kind of putting the evil eye on her if you will.
Creepy. Although in fairness to Walmart, they stopped doing that shit. Some of the other companies...didn't sound like they stopped. But it seems like a halfway intelligent insurance fraud investigator could have shut down a lot of shit like cancer dude getting insured for five million...
And if it is legal, then the same insurance should be offered FIRST to the spouse or dependents of the sick person.
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