The recent shooting of United Health Group’s CEO indirectly highlights the severe financial pressure America is facing to safeguard its core interests. The Affordable Care Act, introduced during the Obama administration, essentially aimed to build a massive capital pool—a model akin to Warren Buffett’s. Unlike banks, insurance companies do not promise interest, and they operate on delayed probabilistic payouts. By adjusting claim ratios, they can access vast sums of money almost for free. Well, this explains why Trump consistently criticized the Affordable Care Act, calling it a “scam” that was sold through emotional appeals.
So I assume that, part of United Health’s funds have been invested into the stock market, but now they can’t be withdrawn. Once the claims rejection rate reaches higher than 30%, the situation has escalated, leading to the CEO’s murder by an affluent individual. Even Warren Buffett has begun quietly withdrawing funds, which is a significant sign of the tightening liquidity in the US market. Imagine, a claims rejection rate of 30%, could mean that possibly 30% of the funds, which is approximately $100 billion, cannot be pulled out of the market. With these funds likely tied up in the “Mega 7”, any attempt to liquidate them would shake the market to its core.
The Bigger Picture: Financial Strain Across Insurance Giants
The CEO’s murder indirectly indicates two possible issues:
- Anger from insurance holders due to high rejection rates.
- Risky investment decisions to lock up 30% of the company’s funds in an illiquid market, with major investors now demanding accountability.
Insurance in the US is a financial tool often used by the wealthy to evade taxes. For United Health alone, total revenue for FY2023 was $371.622 billion, with $290.827 billion from premiums. With a 30% rejection rate, that means around $100 billion is probably tied to the stock market. Across the entire US insurance market, the stakes are even higher. As of 2024, the life and non-life insurance market size is projected at $2.02 trillion. Assuming a 30% rejection rate, $600 billion could be locked up in stocks. Even at a safer 20% rejection rate, $400 billion remains in play. When leveraged at a 3:1 ratio, this translates to $1.2 trillion to $1.8 trillion in total market impact. These numbers underscore the systemic risk in the US financial system.
A Deeper Crisis: The Erosion of Trust
The recent CEO shooting and California wildfires share a common thread, they both show the limits of social safety nets driven by capital gains. The US is a nation heavily relies on insurance, and insurance funds are a significant force behind the capital market. Refusing claims to avoid payouts for wildfires, or accepting the risk of shootings to protect profits signals a deeper issue - it undermines America’s identity as an insurance superpower. The collapse of faith in this massive capital pool could have devastating consequences. Even Warren Buffett’s success is deeply tied to leveraging vast insurance funds for stock investments.
The Betrayal of the Upper Class
It’s obvious that both the killer in the CEO shooting and the victims of wildfire belong to America’s upper class. These individuals, once were the backbone of the system, now feel betrayed, by profit-driven insurance companies. Historically, America betrayed its middle class; now it seems to be turning its back on the upper class as well.
On the surface, the stock market continues to rise, but it is draining everyone, no matter rich or poor. This unsustainable system risks collapsing under its weight, choking the lifeblood of American finance. The true danger lies in this systemic unraveling, where even the wealthiest find themselves abandoned.