red states rule
11-19-2009, 08:11 AM
Why is AARP backing Obamacare given the fact healthcare benefits for seriors will be cut and rationed?
Well, follow the money and get the answer
AARP's tacit endorsement of Medicare cuts line its pockets, but shortchanges seniors
MCT News Service
November 5, 2009
ALEXANDRIA, Va.
Clearly something must be up with AARP.
Why else would the nation's largest lobbying organization, sworn to protect the interests of senior citizens, watch silently as Congress plans to cut Medicare spending by $400 billion to pay for its health reform legislation? Could it be that the interests of seniors and AARP are not exactly aligned?
Let's follow the money. AARP takes in more than half of its $1.1 billion budget in royalty fees from health insurers and other vendors that market services with the organization's name. Medicare supplementary policies, called "Medigap" plans, make up the biggest share of this royalty revenue.
AARP has an interest in selling more, not fewer, Medigap plans, of course. But there is a competitor on the block.
A growing number of seniors are enrolling in a new form of Medicare coverage Medicare Advantage where they don't need Medigap.
Medicare Advantage was created in 2003 to give seniors the option of joining private plans that are paid up to 12 percent more to provide better health benefits than traditional Medicare.
These private plans compete with each other by offering seniors such services as lower premiums, better drug coverage, dental care and eyeglasses, and more comprehensive coverage for major medical expenses. Nearly 11 million of Medicare's 45-million beneficiaries are in the program.
Congress' health reform bills would cut spending for Medicare Advantage by at least $150 billion. President Obama has singled out Medicare Advantage, saying it is a give-away to private insurance companies. But virtually all of the extra money goes back to seniors in the form of better benefits, so it's seniors who have the most to lose.
A Washington Post front-page story on Oct. 27 questioned whether AARP has a conflict of interest in appearing to represent seniors while watching Congress cut Medicare.
"Democratic proposals to slash reimbursements for ... Medicare Advantage are widely expected to drive up demand for private Medigap policies like the ones offered by AARP, according to health-care experts, legislative aides and documents," the Post reported.
Medigap plans are a cash cow for AARP. And if people don't need them because they can enroll in Medicare Advantage plans, that's a revenue loss for AARP.
http://www.chicagotribune.com/news/nationworld/sns-200911050804mctnewsservbc-aarp-con-mct1084nov0,0,4627579,print.story
Well, follow the money and get the answer
AARP's tacit endorsement of Medicare cuts line its pockets, but shortchanges seniors
MCT News Service
November 5, 2009
ALEXANDRIA, Va.
Clearly something must be up with AARP.
Why else would the nation's largest lobbying organization, sworn to protect the interests of senior citizens, watch silently as Congress plans to cut Medicare spending by $400 billion to pay for its health reform legislation? Could it be that the interests of seniors and AARP are not exactly aligned?
Let's follow the money. AARP takes in more than half of its $1.1 billion budget in royalty fees from health insurers and other vendors that market services with the organization's name. Medicare supplementary policies, called "Medigap" plans, make up the biggest share of this royalty revenue.
AARP has an interest in selling more, not fewer, Medigap plans, of course. But there is a competitor on the block.
A growing number of seniors are enrolling in a new form of Medicare coverage Medicare Advantage where they don't need Medigap.
Medicare Advantage was created in 2003 to give seniors the option of joining private plans that are paid up to 12 percent more to provide better health benefits than traditional Medicare.
These private plans compete with each other by offering seniors such services as lower premiums, better drug coverage, dental care and eyeglasses, and more comprehensive coverage for major medical expenses. Nearly 11 million of Medicare's 45-million beneficiaries are in the program.
Congress' health reform bills would cut spending for Medicare Advantage by at least $150 billion. President Obama has singled out Medicare Advantage, saying it is a give-away to private insurance companies. But virtually all of the extra money goes back to seniors in the form of better benefits, so it's seniors who have the most to lose.
A Washington Post front-page story on Oct. 27 questioned whether AARP has a conflict of interest in appearing to represent seniors while watching Congress cut Medicare.
"Democratic proposals to slash reimbursements for ... Medicare Advantage are widely expected to drive up demand for private Medigap policies like the ones offered by AARP, according to health-care experts, legislative aides and documents," the Post reported.
Medigap plans are a cash cow for AARP. And if people don't need them because they can enroll in Medicare Advantage plans, that's a revenue loss for AARP.
http://www.chicagotribune.com/news/nationworld/sns-200911050804mctnewsservbc-aarp-con-mct1084nov0,0,4627579,print.story