AARP’s payback for supporting Obamacare
It was more than a bit curious when AARP supported Obamacare. After all, AARP purports to represent seniors, and Obamacare claims that it will cut $500 billion from senior’s Medicare.
Well, now we know why.
As pointed out an earlier post, the administration has granted 222 “waivers” from the provisions of Obamacare. One of the largest recipients of the government’s largess is AARP.
AARP spent over $240 million on ads and lobbying to rally their members around Obamacare. In return, here is what AARP got for the “Medigap” insurance it offers to seniors.
The AARP is also exempt from the new law’s $500,000 cap on executive compensation for insurance executives. (The nonprofit’s last CEO received over $1.5 million in compensation in his last full year, 2009.) It won’t pay any of the estimated $14 billion in new taxes on insurance companies, though according to its 2008 consolidated financial statement, it gets more money from its insurance offerings than it does from dues, grants and private contributions combined. Nor will it have to spend at least 85% of its Medigap premium dollars on medical claims, as Medicare Advantage plans must do; the AARP will be held to a far less restrictive 65%.
So, best I can tell, AARP will stuff its pockets with money from selling its Medigap policies to seniors. All non AARP Medigap policies will have to charge more in premiums as all of Obamacare’s onerous provisions will apply to solely to the non AARP policies.
And, there you go. AARP’s $240 million in expenditures to support Obamacare will be recouped in a heart beat.
This conduct on the part of both AARP and the administration is more than despicable.
Yesterday, I endured an interview with Texas Congresswoman (D) Eddie Bernice Johnson who explained that the reason the health insurance policies premiums are so high is not because Obamacare does not lower costs. It is because the greedy insurance companies are violating antitrust laws. Congress needs to investigate and use the antitrust laws to reign them in. I am paraphrasing and of course am not a lawyer, but my read of antitrust law is that AARP could be in violation. Wouldn't they be in a position of a monopoly or have a competitive advantage with this waiver?
OK. Even if I'm wrong on this. There should be NO waivers period
What a wonderfully written piece of legislation that health reform act.
Perhaps repeal is unnecessary. The Republican house could just legislate waivers for all.
A waiver for all, the perfect solution! While we are forced to endure this theater of the absurd called Congress, we should adopt absurd legislation, also.
Good for you Lynn. I assumed everyone would think I was joking.
This is unbelievable corruption. Shout it to the hills.