I wondered why the self declared non-partisan group AARP would support a government run healthcare system, so I did some investigation, and found the answer glaringly simple. MONEY! It’s the main driving force of any business, and AARP is no exception.
I assumed they made most of their money from memberships, a glance at the 2008 AARP financial statement, changed my mind on that! The group received nearly $653 million in royalties from private insurance companies that sold products referred by AARP in 2008, while taking in $249 million in membership dues. Wondering what products they are getting commissions on I dove in a little deeper.
Seniors have basically two choices for Medicare supplemental insurance, the first one is a supplement called “Medicare Advantage,” the second one is called “Medigap” insurance and is sold by private insurance companies. This medigap is what the AARP endorses, and gets royalties on. Section 1161 of the House bill would slash payments to Medicare Advantage health plans used by 20 percent of seniors and cause them to lose some benefits, including vision and dental coverage, thus forcing them into the private insurance supplements such as AARP offers.
AARP is a non-profit 501 (c)(4) organization which doesn’t allow them to take money from the government, but alas they have figured a way around all that. AARP FOUNDATION is a separate and distinct organization, they are housed in the same building as AARP, have a completely separate Board of Directors, but they have one major distinction, they are listed as a 501 (c)(3) organization that not only CAN take government money, they actively sought out federal grants. The Internal Revenue Service, the Department of Health and Human Services, the Department of Housing and Urban Development and the Department of Labor, were all sources of the second largest income of the $90 million 2008 income.
The AARP FOUNDATION can engage in fundraising activities to advance its particular public policy agenda. However, the foundation works so closely with AARP that the two entities are barely indistinguishable. Is this combination of organizations reminiscent of another group?
House Minority Leader John Boehner, R-Ohio, blasted AARP in an interview with the Hill just days ago."AARP is one of the most liberal organizations in Washington, D.C.," Boehner said. "Obviously, most seniors aren't aware of that."
As Paul Harvey used to say……….now you know the rest of the story!
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Comments
Follow the money Al. AARP will be laughing all the way to the bank.
paulK, I will avoid being as nasty and rude as you were to correct you.
www.kff.org/medicare/upload/2052-13.pdf
"The Balanced Budget Act (BBA) of 1997 renamed the Medicare
private plan options “Medicare+Choice”, and authorized
Medicare to contract with local preferred provider organizations
(PPOs), private fee-for-service (PFFS) plans, and medical
savings account (MSA) plans. The Medicare Modernization Act
of 2003 (MMA) renamed the program “Medicare Advantage”,
authorized two additional plan types (regional PPOs and
special needs plans), and boosted federal payments to plans to
encourage plan participation."
"The Medicare Modernization Act
of 2003 (MMA) renamed the program “Medicare Advantage”"
A government program working with private insurers to supplement Medicare insurance. SUPPLEMENT meaning Medicare is not that comprehensive of a program. That's why AARP is for it, they SELL supplemental insurance.
You two pinheads, you need to do some research before bashing Mr Ritter's article, AARP makes money from selling "brand named insurance". If medigap insurance goes by the way side that leaves more of a market share for the "branded" product AARP endorses..........you two need proof? or can you actually find it yourselves online?
Personally I think you are just one idiot with an opinion, try getting facts first before shooting off your mouth!
all you need to do is click on the ad above the article, it takes you to the plans they offer, it says:
These plans carry the AARP name and United HealthCare Insurance Company pays a fee to AARP and its affiliate for use of the AARP trademark and other services. Amounts paid are used for the general purposes of AARP and its members.
AARP Health is a collection of health related products, services and insurance programs made available through AARP. Neither AARP nor its affiliate is the insurer. AARP contracts with insurers to make coverage available to AARP members.
Not connected with or endorsed by the United States government or the federal Medicare program.
Now ummmmmmmm do you or do you not have any reading comprehension?
Hey herb, even notice that when the facts are shown to a rabid liberal they fade into obscurity?
Thank you for bringing this situation to light, I had NO idea!
AARP was formed as a way for Colonial Penn to sell insurance. Selling insurance has always been and continues to be their main purpose.
Happy Indep you are right follow the money trail. I will not renew my AARP membership any longer. It is amazing how people will not research those who openly lie to them. A lie goes a long way before the truth is exposed, and that is what companies like AARP and the President know. I hope people let them vote this health care plan into effect and when they find out it really doesn't work like the stimulus package that was suppose to create jobs. Oh, yes don't let me forget the money that people will have to pay in extra taxes for the lying president so called tax break he gave everyone, we all are going to get screwed in January when we pay our taxes. We might as well give all out paychecks to the government both federal and state because they want to work and tax us into the grave. Might I include that your unemployment will get taxed also, so just because you are out of a job does not mean they can't get you. I owe, I owe, it's off to work I go!!
I'm new here and a bit curious. How come the comments I make that seem to run against the conventional thoughts on this board seem to disappear, and the comments opposing those views remain? Are thoughts from the loyal opposition censored for content alone. I don't think I violated any rules of taste or decorum.
Paulk, It isn't because you disagree that your comments are removed, I'm sure it's because you purposely LIED about the products that AARP sells.
Mr. Ritter reported on facts, and I'm sure he doesn't want you confusing the message.
I actually showed the direct quotes from the AARP website, you on the other hand typed something you reported as coming from their site, but it was a pure lie, to be honest, I'm surprised he has left this last comment of yours on.
Maybe Obama has a place in his cabinet for yet another liar like you, of course you would need to owe some back taxes first!
It's funny how Paulk lied about Health Insurance, and what AARP offers, and how "other" supposed liberal commentors say that Mr Ritter never sites facts, just opinions.
The funniest part is that those same liberals never give specific cases.......
To these liberals I say, prove what you claim or go elsewhere! The facts stated in this article are 100% true! However, the claims made by "paulk" were flat out lies! So Paul k comes back as "dave whatever" and makes more blatent lies, and you wonder why we don't trust YOUR president!I guess because he lies everyone in the Democratic party thinks it's ok now.
Al thank you for this article. I had my suspicions about AARP's support of the healthcare bill, and now I know that they were not unfounded. You are the man!
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