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.
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.