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.

Posted in


The Sound Off Sister was an Assistant United States Attorney for the Southern District of Florida, and special trial attorney for the Department of Justice, Criminal Division; a partner in the Florida law firm of Shutts & Bowen, and an adjunct professor at the University of Miami, School of Law. The Sound Off Sister offers frequent commentary concerning legislation making its way through Congress, including the health reform legislation passed in early 2010.


  1. Lynn on January 7, 2011 at 3:21 am

    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

  2. GdavidH on January 7, 2011 at 5:43 am

    What a wonderfully written piece of legislation that health reform act.

    Perhaps repeal is unnecessary. The Republican house could just legislate waivers for all.

  3. Lynn on January 7, 2011 at 6:16 am

    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.

  4. GdavidH on January 7, 2011 at 8:24 am

    Good for you Lynn. I assumed everyone would think I was joking.

  5. Rip on January 10, 2011 at 4:50 am

    This is unbelievable corruption. Shout it to the hills.


The website's content and articles were migrated to a new framework in October 2023. You may see [shortcodes in brackets] that do not make any sense. Please ignore that stuff. We may fix it at some point, but we do not have the time now.

You'll also note comments migrated over may have misplaced question marks and missing spaces. All comments were migrated, but trackbacks may not show.

The site is not broken.