The report last week written by Goldman Sachs analysts for the health insurance industry, discussing the different reform bills and asserting that the best option for insurers would be the status quo, actually revealed quite a bit about the financial firm as well.

The analysis seemed to go a bit further than a standard cost-benefit examination, depicting not only a baseline scenario but inventing a “bull case” scenario where the insurance industry lobbies Congress for certain changes to the health reform bill that would increase their profit and stock profile. That shifted the perception of this document, from one of analysis to one of advocacy. This can perhaps be explained by Goldman Sachs’ enormous stake in the health insurance industry.

In the pair of Goldman Sachs documents obtained by FDL News, Goldman lists a series of disclosures detailing their relationship to top insurance clients. They have major ties to three of the top health insurers in America.

Here’s how it starts on page 13 of 10 years of health reform, the document assessing reform proposals:

Financial Advisory Disclosures

Goldman Sachs is acting as financial advisor to Wellpoint, Inc. in an announced strategic
transaction.

That’s fairly opaque. But then there’s about a page worth of detailed information:

The following disclosures relate to relationships between The Goldman Sachs Group, Inc. (with its affiliates, “Goldman Sachs”) and companies covered by the Global Investment Research Division of Goldman Sachs and referred to in this research.

Goldman Sachs has received compensation for investment banking services in the past 12 months: Aetna, Inc. ($25.22), UnitedHealth Group ($24.45) and WellPoint, Inc. ($46.16)

Goldman Sachs expects to receive or intends to seek compensation for investment banking services in the next 3 months: Aetna, Inc. ($25.22), UnitedHealth Group ($24.45) and WellPoint, Inc. ($46.16)

Goldman Sachs has received compensation for non-investment banking services during the past 12 months: Aetna, Inc. ($25.22), UnitedHealth Group ($24.45) and WellPoint, Inc. ($46.16)

Goldman Sachs had an investment banking services client relationship during the past 12 months with: Aetna, Inc. ($25.22), UnitedHealth Group ($24.45) and WellPoint, Inc. ($46.16)

Goldman Sachs had a non-investment banking securities-related services client relationship during the past 12 months with: Aetna, Inc. ($25.22), UnitedHealth Group ($24.45) and WellPoint, Inc. ($46.16)

Goldman Sachs had a non-securities services client relationship during the past 12 months with: Aetna, Inc. ($25.22), UnitedHealth Group ($24.45) and WellPoint, Inc. ($46.16)

Goldman Sachs has managed or co-managed a public or Rule 144A offering in the past 12 months: WellPoint, Inc. ($46.16)

Goldman Sachs makes a market in the securities or derivatives thereof: Aetna, Inc. ($25.22), UnitedHealth Group ($24.45) and WellPoint, Inc. ($46.16)

Goldman Sachs is a specialist in the relevant securities and will at any given time have an inventory position, “long” or “short,” and may be on the opposite side of orders executed on the relevant exchange: WellPoint, Inc. ($46.16)

Goldman Sachs holds a position greater than U.S. $15 million (or equivalent) in the debt or debt instruments of: WellPoint, Inc. ($46.16)

Simply put, Goldman is in business with WellPoint, Aetna and UnitedHealth. Pretty much every service that Goldman provides, they have provided to those three companies. In the case of WellPoint, they’re holding over $15 million dollars of the company’s debt. They need these companies to be profitable.

But that’s just the insurance market, not the overall health care market. In a separate document entitled “In the eye of the storm”, looking at stock buys in the overall market, Goldman lists even more disclosures. In addition to Aetna, UnitedHealth and WellPoint, the company lists major relationships with AMERIGROUP Corp., Centene Corp., CIGNA Corp., Community Health Systems, Inc., Coventry Health Care, Inc., Emdeon Inc., Emergency Medical Services Corp., Health Net, Inc., HealthSpring Inc., Humana Inc., Magellan Health Services, Inc., Molina Healthcare, Inc., Quest Diagnostics Incorporated, Tenet Healthcare Corp., Universal American Corp., Universal Health Services, Inc. and WellCare Health Plans, Inc. Universal Health Services is another company in which Goldman holds over $15 million in debt.

This is not a surprising circumstance. Goldman is one of the largest investment firms in the world, and health care represents 1/6 of the national economy. Of course the two would intersect. But this deep relationship can explain why Goldman seems more interested than most stock analysts in finding policy solutions that increase health industry value. What’s good for the industry is good for Goldman Sachs.

Andy Stern and hundreds of protesters are demonstrating outside of the Goldman Sachs offices at noon today.