Why AARP Loves Obamacare

Paul Ryan got booed recently at an AARP conference when he said that the best way to save Medicare would be to repeal Obamacare. AARP is supposedly an “independent” and “non-partisan” organization that speaks to seniors’ concerns and helps them get discounted health coverage. Then where’s the disconnect between AARP and their 35 million members? Most AARP members are completely opposed to Obamacare, but AARP is very much in favor of it. I thought they acted with their senior members’ best interests. Actually, they’re much more concerned with their bottom line than helping people over 50.

Whenever we think about how a monstrosity of a bill like Obamacare could have ever been enacted, we think of the left’s and particularly Obama’s affinity to socialism and their desire to control people and make people more and more dependent on government programs for survival. These things are obviously true, but there are other factors involved as well like money. When you “follow the money” behind Obamacare, you’ll find that AARP actually gained about $2.8 billion dollars as a result of it being enacted.

AARP isn’t really an insurance company in the way we normally think of an insurance company. The way it makes its money is by licensing its name out to private insurance companies who sell “Medigap” policies and keeping 4.95% of the premiums paid to these insurance companies. AARP calls this 4.95% “royalties.” This comprises over half of its income, while only 20% of its income is from membership dues. Medigap policies are policies that supplement Medicare by covering Medicare’s deductibles and coinsurance. They also cover catastrophic care.

Avik Roy is a health care policy advisor to the Romney campaign and also a contributing writer to Forbes. He points out that there were Medigap reform plans that were proposed that would have saved policy holders hundreds of dollars in premiums. But AARP blocked these reforms because AARP would have lost $1.8 billion if they had been enacted. So, in keeping these reforms out of Obamacare, AARP was able to hold on to that $1.8 billion at their senior members’ expense.

Roy also pointed out that AARP supported Obamacare’s proposed cuts to Medicare Advantage plans because in so doing, it would force seniors out of those plans, into traditional Medicare and therefore in the market for Medigap policies. And AARP makes a majority of their income from these Medigap policies. In fact, AARP would stand to gain about $1 billion in additional revenue because of Obamacare’s cuts.

That’s a total of about $2.8 billion that AARP gained by lobbying for and supporting Obamacare. Roy explained that it got even worse because AARP is exempt from Obamacare’s insurance mandates:

AARP Medigap plans are exempted from most of Obamacare’s best-known insurance mandates. [They’re] exempted from the ban that requires insurers to take all comers, regardless of pre-existing conditions. The plans are exempted from the $500,000 cap on insurance industry executive compensation; top AARP executives currently make more than $1 million. AARP plans are exempt from the premium tax levied on other private insurers. IPAB, Medicare’s rationing board, is explicitly barred from altering Medicare’s cost-sharing provisions, provisions that govern the existence of Medigap plans. And AARP Medigap plans are allowed to have twice the administrative costs that other private insurers are allowed under Obamacare’s medical loss ratio regulations. This last point is key, because AARP’s 4.95 percent royalty is a significant administrative cost.

So, there you have it. That’s why Ryan got booed. Repealing Obamacare would mean less money for AARP. Who cares about their members? They just want to make sure they get the most money possible…even though they’re considered a non-profit organization. Remember when Obama said in his acceptance speech that he never wanted seniors to be at the mercy of insurance companies? Yeah, that was just talk. As long as he gets lots of money from lobbyists, he doesn’t care one bit about the people.








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Posted in 2012 Election, Law, News, Politics Tagged with: , , , ,
  • http://www.facebook.com/tess.comments Tess Comments

    August 8, 2012 – A new Congressional Budget Office (CBO)
    report says that under the Affordable Care Act, a.k.a. Obamacare, 30 Million
    Non-Elderly Americans Will Remain WITHOUT Health Insurance In 2022.

  • http://www.facebook.com/tess.comments Tess Comments

    Watch Out for the Hidden Taxes in Obama’s 2010 Affordable Health Care Law.

    Why Elizabeth Warren (D) Wants to Repeal Part of Obamacare

    By Michael Ono | ABC OTUS News – 09/10/12 – The 2.3 Percent
    Excise Tax On Medical Devices is a little-known provision in the law that is
    estimated to raise $20 billion in revenue over 10 years, according to the Joint
    Committee on Taxation.
    But some Democrats, including Warren, a Democratic National
    Convention speaker, represent states that employ medical device workers and are
    Concerned That The Tax With Hamper Job Growth In Industry valued at over $100
    billion in 2010, according to the Department of Commerce.

  • http://www.facebook.com/tess.comments Tess Comments

    09/20/12 – WASHINGTON (AP) — Nearly 6 million Americans —
    significantly more than first estimated— will face a TAX penalty under President Barack Obama’s health overhaul for not
    getting insurance, congressional analysts said Wednesday. MOST WOULD BE IN THE
    MIDDLE CLASS.

    The new estimate amounts to an inconvenient fact for the
    administration, a reminder of what critics see as BROKEN PROMISES.

    Nearly 6 million Americans — most of them in the middle
    class — will face a tax penalty for not carrying medical coverage once
    President Barack Obama’s health care overhaul law is fully in place.

    More broken promises by Obama to the Middle-Class.

  • StephenB

    I quit AARP several Months ago because they seemed like they were leaning to the left. In this article, they say AARP is an “independent” and “non-partisan” business. To me that appears to be a bucket of bull. I still will not go back to AARP.

    • Taydwa

      I quit AARP severa years ago, when I saw how lefty they were. My sister sends all their stuff back to them in their pre-paid envelopes. I’m going to start doing that too. I joined AMAC.

    • SickoftheBS

      Check out AMAC

  • LeSellers

    I love getting AARP flyers in the mail: they just wasted another 45¢ on me. Since i get ‘em about every two weeks, it’s not going to be long before they have lost thousands at just my address.

    I have been tempted to return the pre-paid envelope and cost them another $1+, but not even I’m that cynical.

    Mr. O’bama, were are the Jobs?

    • SickoftheBS

      I am that cynical, I return them everytime they send them with a note to stop sending them to me. I will not pay to get rid of their garbage, let them. I send every piece of the mail they sent including the original envelope they sent.

      • LeSellers

        Good for you. I just may from now on, if my Jacquie doesn’t toss ‘em first.

        ‘Course, by sending them your address, they may, eventually, stop sending them (or maybe not). And that would be a shame: think of all the people you would be putting out of work, including the postmen.

        Mr. O’bama, where are the Jobs?

        • Lowell

          I withdrew from AARP the day they came out in favor of Obamacare. Those letters don’t even come from AARP, they come from the insurance underwriters. The just have ARRP stamped on them. Anyway, I just put the whole thing in the return envelope along with a note explaining that I would never buy anything with AARP on it as long as AARP continues to support Obamacare. (and yes, spellchecker, Obamacare is a word(and a four letter word at that)). (and they seem to have taken my name off their mailing list).

        • LeSellers

          I call it “O’bamaDon’tCare” because it reflects the political reality of the president’s position: he don’t care about people, he cares about his position, his party, and his power.

          There are many “four-letter words” that have more (or fewer) than four letters. O’bamaDon’tCare is one of those, fer shre.

          Mr. O’bama, where are the Jobs?

  • Bob Marshall

    While the things that will happen under Obamcare have been pointed out under the Romney/Rand Plan the families who have senior family members in a nursing home will be billed along with what Medicaid pays. Those on social security will be required to attend a end-of-life seminar once ever five years. Those who are receiving cancer care the type and amount of care will be determined by the age of the patient. Neither plan seems to be in the best interest of all involved. There are also a lot of similarities between the the two plans.

  • concernedru

    The AARP is a fraud and I’m not renewing my membership. I was fired at age 61 from the Hartford a AARP approved personal lines insurer. Age and Disabilty discrimination Federal Law Suit pending. AARP offered no help and continue to associate with the corrupt Hartford number one forever in Bad Faith claims from their policy holders. Boycott the Hartford and throw OBUMA out Nov. 6th.

    • Guest

      I DROPPED AARP WHEN THEY FIRST GOT ON BOARD WITH OBAMACARE (DEATH PANEL ORG.). I TRIED HARTFORD INSURANCE FOR ONE YEAR AND I HAVE NEVER SEEN SUCH LIES AND CORRUPTION AS THESE 2 CO-HORTS. HARTFORD CHANGED THE PAYMENTS EVERY MONTH, DUE DATES DIFFERENT EVERY MONTH. THEY THINK EVERYONE IS STUPID AND CAN BE TREATED BAD BUT SAY NOTHING ABOUT IT. I LET THEM KNOW HOW I HATED THEM AND WENT BACK TO THE COMPANY THAT I’D BEEN WITH FOR 36 YEARS. I’M ALL FOR THE BOYCOTT OF HARTFORD AND AARP. BIRDS OF A FEATHER FLOCK TOGETHER, AARP, HARTFORD AND OBAMA (OBAMACARE).

      • http://www.facebook.com/profile.php?id=1650903242 Mary Hartbarger

        Smart

  • SickoftheBS

    The AARP stance on Obamacare is why I and many seniors belong to AMAC and the numbers are growing daily. As well as the AARP numbers must be shrinking Daily.
    AARP does not represent seniors but rather look to line their own pockets with the money they plan to bring in with Obamacare. AARP is as big as a loser and almost as big a Liar as Obama himself.

  • caskinner

    Been getting stuff from them wanting me to join. There is no way I will ever become a member. They are just wasting their money.

  • Fredb

    AARP has been a front group for the Democrats for decades.

  • mark

    AARP stands to make a lot of money off of ovomitcare no wonder they support it. it’s like money talks B.S. walks.

  • hongryhawg

    I threw my AARP card back to those traitors 3 years ago. It is not an organization I want to be associated with. They do not represent me. Like so many other previously honorable organizations, they have sold out. They are no better than the politicians they serve.

  • LULA

    I would suggest to you to ASK AARP WHY they have lost thousands of their members? I am only one, but know of many and that reason is because they let them down and wanted Obummer to be elected. No doubt they are being paid money galore to get him re-elected and we are paying just as much to get him OUT of our government and the United States of America.

  • TLady62

    That’s why I’ll be signing up with AMAC.

  • Cheryl

    I wrote AARP a letter when they threw me under the bus on obamacare – they still send me all of their info and 2x’s in the last 3 months have sent me cards. I guess they can’t believe that not all seniors have “moments” and just might accidental y re-enroll.