as seniors loose Medicare Advantage - ARRP benefits
If you love to hate the big corporations, then AARP fits the bill as a billion dollar-plus generating company! This organization was founded in 1958 and originally named American Association of Retired Persons. In 1999 it officially changed its name to just "AARP" and it no longer required its members to be retired. According to an article in the New York Times: "Will America Grow up Before it grows old? from 1996. One of the questions asked was "How did AARP become the 800-pound gorilla of American politics?"
The business model of AARP consists of both non-profit and for-profit entities. AARP's non-profit division includes a strong lobby for senior citizens on both state and national levels,which is permitted by it 501(c)(4) status. They are the largest and most powerful lobby group, supposedly for senior Citizens. AARP claims that it is non-partisan and does not support, oppose or give money to any candidate or poliical party. However individuals in leadership roles of AARP were strong financial supporters for Obama.
AARP started developing other "for profit" businesses as subsidaries in 1999. .AARP Services, Inc. became a subsidary of AARP, it is a wholly-owned tadxable subsidiary (taxable because they make a profit) of AARP. This subsidiary develops new products, manages and markets products and services that are offered as benefits to it millions of members. They also create and maintain partnership and sponsorship relationships, plus they manage and have developed the social networking capabilities of the AARP's website.. The services offered by AARP, with discounts, range from Health Care products, travel and leisure products, to life-event planning. They offer additional member discounts on various items like renntal cars, cruises, and vacation packages; special offers on technology and gifts; pharmacy services; legal services; and long-term care insurance.
More importantly, they promote Medicare Supplement Insurance (also known as Medigap), when they sell their brand name to promote the plans. (Note: the name "AARP" has became a Brand, just like Coke, Crayola, Jell-O or Google. Any product that uses another company's Brand Name on their product generates income to the Brand's company. To understand this concept see "AARP Says It Will Become Major Medicare Insurer While Remaining a Consumor Lobby" pubished in New York Times in April of 2007.
According to AARP's 2008 Consolidated Financials, it was paid $652,000,000 in royalties from insurance companies that sold products referred by AARP. In the same financials, AARP received an additional $120,000,000 in ad revenues from insurance company placements in their publications. In addition, total up the revenue from 40 million senior who pay $12.50 in annual membership fees which sounds quite affordable. Couples are both covered under the same fee.. If it were 40 million individuals they would recieve half a billion dollars revenue from membership, althought I believe the actual figure was closer to $250,000,000. Here is the link to their financial report: http://www.aarp.org/aarp/About_AARP/annual_reports/
There appears to be a blatant conflict of interest as AARP continues to claim it represents the best interest of Seniors, yet polls clarly show that 2 out of 3 Seniors do not want this current Health Care Reform Bill. The true benefit to AARP is their financial gain from selling more medigap insurance. Not surprisingly, most senior citizens do not even realize that AARP is a giant lobby group that generates a bilion dollar income off the sale of Medi-gap insurance to these same seniors they are supposed to be lobbying for!
Once you eliminate 10+ million seniors from the Medicare Advantage plans, they will be left with two options. First, they can keep straight Medicare and sufer the financial burden of health care that is not covered by Medicare and the lack of ability to find a Dr. that will treat a straight Medicare patient . Second they can purchase an expensive Medigap plan, with AARP and United Health Care being the #1 providcer of Medigap plans. Ask yourself, who benefits from AARP's endorsement of the health Care reform bill - Seniors on a fixed income or the coffers of AARP?
Members of AARP have had a strong voice of protest against AARP's choice to support this bill however, their voices appears to have fallen of deaf ears. Seniors have called, held discussions with AARP and on AARP forums, sent letters and many have cancelled their membershps. During one month this past summer, it was reported that 60,000 members resigned their AARP membership.
Does this concern AARP? According to an article from The Hill, AARP Endorses House Health Care Reform Bill by Jeffrey Young on 11/03/09. AARP had the following comments on the level of their concern:
"AARP's prominent role in promoting health care reform has also fomented dissent within its ranks. AARP executives have acknowledged that it's conservative memvers have objected to its perfeived support of Obama's agenda, with a few thousand of them quitting in protest.
"We believe," Rand said, that "more people will be interested in lower-cost health care than being mad at AARP," and that the group will actually gain members as a result of its support for the House bill.
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Comments
Great article, clear, concise and AARP's lack of consideration for their members is exactly the reason I cancelled my membership.
Very interesting article. AARP has a lot to answer for with their backstabbing of their own constituents for profit!I hope all Seniors who have their coverage cancel!
Great article. You are on target. Also, AARP received
$18 million in stimulus money. Why should AARP be concerned about senior benefits, their coffers will be full with seniors purchasing AARP sponsored Medigap policies.
Great article. As A Mom quality all the way. ACORN. AARP. I avoid both.
Excellent piece detailng the similarities between AARP and Seiu. I think if you extend this out, the trail would lead to George Soros.
I've been with AARP about a year now, and I have to say I am more then a little disappointed. For an organization that is supposed to be a watch dog for the interests of seniors they leave a lot to be desired. They have evolved into a purely business organization and have left the very people they are supposed to be helping, in the dirt.
I have an idea they are in for a real surprise in the near future.
medicare is rising every year, in what it cost the Peron who has it as well, medicare insurance and medicare supplement insurance, medigap plans, gores up in cost too. Also going higher in cost seems to be part D medicare as well, drug coverage. I had to find a new medicare supplement plan G this year, as the one I had had for 4 years kept going up, I was able to find a new one with another a rated insurance coma y for over 40 cheaper in cost, it is the same plan G medicare supplement insurance plan I used National Medicare Supplement at http://nationalmedicaresupplements.com/ Another good site to learn about medicare is http://americanseniors.com/
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