Wednesday, September 23, 2009

AARP: In the tank for "beloved president's" health care plan

If there was ever a time to blow the whistle on the American Association for Retired Persons and expose them as a left-wing shill group, that time is now.

From the American Spectator:
One of the subplots to the health care debate I've been following is the cozy relationship between AARP and the Obama administration, as the group has thrown its full-throated support behind the Democrats' health care push even though their membership comes from the age group most opposed to Democratic health care proposals. Today, House Republicans have issued a report providing evidence that AARP is in a position to receive tens of millions of dollars in "kickbacks" if Democratic health care legislation becomes law.

President Obama and Democrats have proposed saving money to pay for health care legislation, in part, by cutting $162 billion in payments to Medicare Advantage, which allows Medicare recipients to choose privately-administered coverage. If these changes go through, millions of seniors who have chosen Medicare Advantage would lose their current coverage, forcing them into government-administered plans with less generous benefits. As a result, many of them would have to purchase policies to supplement traditional Medicare. Enter AARP.

In 2008, AARP generated $652.7 million in revenue by selling products like Medigap supplemental Medicare insurance, accounting for over 60 percent of the group's revenue, according to an analysis of its financial statements cited in the report released by the House Republican Conference.

If the House Democrats health care bill becomes law, the report argues, it would be a boon to AARP, because while Medicare Advantage plans will be required to pay out 85 percent of the money collected in premiums to claims made by policy holders, the requirement would only be 65 percent for the kind of Medigap policies sold by AARP.
Three months ago, AARP's CEO, A. Barry Rand, referred to Obama as "our beloved president." Now we know why.

Related posts:

Obama jingoism: Why the AARP is losing members

Thousands bailing from AARP over ObamaCare

1 comment:

kimsch said...

Thanks for the link!