Hmmm: Is the AARP getting “kickbacks” from Obamacare?
AARP members who are still wondering why their leaders in Washington want to sell them out on Obamacare, pay attention.
The GOP has uncovered one very lucrative possibility: Kickbacks.
Here’s the deal:
This week the Centers for Medicare and Medicaid Services announced it was investigating Humana for providing “misleading” information regarding the Administration’s proposed cuts to Medicare Advantage policies-and prohibited other Medicare Advantage plans from providing similar information on how Democrat health “reform” could take away their current coverage.
Yet the Administration’s edict prohibiting plans from communicating with their beneficiaries failed to include AARP, which sponsors a Medicare Advantage plan but has been a prime advocate of Democrats’ government takeover of health care-quite possibly because AARP has been supporting a health care overhaul from which it stands to gain overall handsomely. Even as AARP advocates for cutting Medicare Advantage plans by more than $150 billion, an analysis of the organization’s operations reveals that it stands to receive tens of millions of dollars at the expense of seniors’ medical care-with Democrats’ full approval:
* The Congressional Budget Office has previously estimated that the cuts to Medicare Advantage plans proposed in Democrats’ government takeover of health care (H.R. 3200) would cause millions of seniors to lose their current plan and enroll in government-run Medicare.
* Because the government-run Medicare benefit is less generous than most private health plans, the independent Medicare Payment Advisory Commission found in June that more than nine in ten seniors not in nursing home settings utilize some form of Medicare supplemental insurance. While many of these individuals currently rely on Medicare Advantage plans for the extra benefits they provide to seniors, many would be forced to purchase supplemental Medigap policies should their existing Medicare Advantage plans be taken away from them due to Democrats’ government takeover of health care.
* A review of its financial statements finds that in 2008, AARP received more than half a billion dollars in revenue from selling products like Medigap supplemental insurance policies-$652.7 million in direct “royalties and fees,” and an increase of more than 31 percent from the $497.6 million in similar revenue AARP generated in 2007.
* Royalty revenues now comprise more than half-60.3 percent-of all AARP revenues; a Bloomberg news analysis published in December found that in 1999, royalties comprised only 11 percent of the organization’s total revenues.
* The Bloomberg article-which highlighted what one observer called AARP’s “dirty little secret”-profiled seniors who felt betrayed after paying hundreds of dollars above market price for AARP-branded coverage. One noted that “AARP has great buying power, and people should be able to get the best deal….This is unconscionable, what AARP has allowed to happen.” Another disillusioned senior wrote to the organization’s leadership asking whether AARP had a “‘special relationship’ with [insurance carriers] by which it receives commissions, incentives, rebates, or dare I say ‘kickbacks?’”-and when he arrived at AARP headquarters for a tour, was promptly escorted out of the marble-covered atrium.
* While H.R. 3200 would place strict price controls on Medicare Advantage plans-requiring them to pay out 85 percent of premium revenues in medical claims-Medigap policies face a far less strict 65 percent requirement. In other words, under the Democrat bill, seniors could pay as much as 20 cents more out of every premium dollar to fund “kickbacks” to AARP-sponsored Medigap plans than Medicare Advantage plans.
The higher prices charged by AARP plans, and the organization’s increasing dependence upon revenue from “royalties,” provide tangible evidence why AARP would support cuts to Medicare Advantage that would likely increase their “kickbacks” from Medigap plans.
A Hill source summed it up for me this way: “AARP has endorsed a huge reduction in funding of Medicare Advantage, which touches over 10 million middle-lower income seniors. If Medicare Advantage funding is reduced, and seniors are forced out of the program, they become potential buyers of the heavily-promoted and very profitable Medicare Supplement program sponsored by AARP (MediGap is 70% of AARP’s annual income). Medicare Supplement is a huge source of revenue to AARP. At a minimum, AARP should be required to disclose this every time they discuss Medicare Advantage. Medicare Advantage plans are making important contributions to the Medicare program. These plans focus on prevention and offer disease management programs for beneficiaries with chronic diseases. This focus on chronic diseases is not seen anywhere in MediGap. New research demonstrates that Medicare Advantage plans have reduced unnecessary hospitalizations and readmission rates for beneficiaries with diabetes and heart disease. By reducing the need for hospitalization and emergency room care, private plans are not only improving the health and well-being of Medicare beneficiaries – but also achieving greater efficiencies and cost savings. The House proposal (supported by AARP) would disproportionately affect beneficiaries in rural counties and areas where fee-for-service expenditures are relatively low. The current provisions in the bill would result in reductions in Medicare Advantage funding by more than 20 percent in many of these areas and likely limit seniors access to coordinated care through the Medicare Advantage program. The areas that are impacted the most by the bill are the same geographic areas where Congress has acted twice since 1997 to establish payment floors for private plan options in recognition of the inadequacy of existing FFS rates as the basis for Medicare Advantage payments.”
Philip Klein at the American Spectator asked the AARP for comment — and received an evasive statement decrying “scare tractics” in response.
Card-carrying members might want to ask AARP headquarters about this:
Toll-Free Nationwide: 1-888-OUR-AARP (1-888-687-2277)
And the question one AARP member asked his AARP representative arises again: “Do you work for us or do we work for you?”
See what others have said
Note from Michelle: This section is for comments from michellemalkin.com's community of registered readers. Please don't assume that I agree with or endorse any particular comment just because I let it stand. A reminder: Anyone who fails to comply with my terms of use may lose his or her posting privilege.
Trackbacks
- Health Care BS
- Jeremiah Films
- Sister Toldjah
- Sister Toldjah
- Villainous Company
- » Daily Links – 09/23/09 NoisyRoom.net: Where liberty dwells, there is my country…
- PianoFan
- PianoFan
- PianoTrade
- Gathering of Eagles: NY
- TEA PARTY IN WASHINGTON, DC – Nov. 5, 2009 at noon « FactReal
- HEALTHCARE VOTE TODAY IN THE HOUSE « FactReal
- Michelle Malkin » Rejected AARP solicitation form of the day
- Michelle Malkin » The Demcare bribe list
- OBAMA-CARE 101: LONG WAITS, LOW QUALITY, RATIONING, CONTROL… « FactReal
Comments
You must be logged in to post a comment.
Categories: Health care
Doug Ross @ Journal
» Democrats shocked -- SHOCKED -- that Republicans won't eat the juicy, tender crap sandwich they cooked up all on their own
Green Room
» Miss Me Yet? Bush Billboard Mystery SolvedMudville Gazette
» New Standards in JournalismJustOneMinute
» He Played It Left Hand, But Took It Too FarEd Driscoll
» The Night Chicago DiedMudville Gazette
» In this case I'm pro-abortion
Naturally they are. EVERYONE that stands up for FEDERAL health care is. YES?
Stop the lies! Tell every pollster that you are voting out every incumbent. It may be your only hope.
Ruh roh….the curtain is pulled back just a little bit more. Sunshine is truly a disinfectant…I heard that somewhere!
This ex-card carrying member is not surprised in the least. The AARP is just another ethically-challenged organization sharing in the dirty spoils of Hopenchange™
AARP == Avarice and Royalty Program
You are ALL going to HAVE to check this video out!
http://tinyurl.com/lzy7vh
Burn your membership cards and join http://www.60plus.org
They actually have some BRAINS behind their leadership.
It all doesn’t matter. If ObamaCare gets voted in, there won’t be any benefits available to people over 65. The Death Panels will decree that people over that age are too old to qualify for coverage of a medical procedure. They will be handed two pain pills and the phone # for the local chapter of SoylentGreenRUs. If anything less than ObamaCare is shoved through on a compromise basis, Obama and his minions will keep chipping away and chipping away until they get the single payer plan they want.
MEMO TO RINOS: NO COMPROMISE. NOT NOW. NOT EVER.
We need tort reform and the ability to buy health insurance across state lines. The private sector market will take care of the rest and then we will be just fine.
the only people not getting any kickbacks from this admin are “We the People”
whats funny is only a select few still admit they voted for the a$$hat.
the only way to tell nowadays is by their kool aid mustache.
When AARP sent a family member a card with invitation to join, she tore up the card and returned it in the AARP postage-paid return envelope.
I want to know by what authority the president thinks he has the right prohibit speach, or are we down to that now.
If I’m buying their insurance, and their liquidity is being endangered, I’m entitled, no – I demand, they communicate with me.
I sent my annual AARP dues request back with my AARP card cut up, and in big black letters wrote, “NO, you support Obama’s socialist healthcare plan!”
We’re all getting the shaft if (big IF) ObamaCare passes, but they truly have a disdain for the senior members of our population. This madness must stop!
Our government is run like a union hall. If you “know” the bosses, they’ve got your back. If you don’t know them…. get to the end of the line like the rest of the squirming masses.
Obama’s administration probably believes that since they are running the show, including the justice department, they can do whatever they want. There’s no one to hold them accountable. Not even the media.
-They see to it that their ilk (New Black Panter Party) has charges inexplicably dropped.
-They fire Inspector Generals that try to hold them or their ilk accountable, after smearing said IG.
-They refuse to investigate corruption among their own ranks, yet pursue fictitious corruption charges against their opponents.
and on and on and on……
The Age of Obama
And countless ignorant supporters of Obama are still just so enamored with him.
clueless
Not a surprise. The founders of AARP are tried and true leftists. Figures that they are racketeers too. Fits the MO. Same for the guy who owns “Progressive” Auto Insurance. Don’t give him a dollar of business.
we need to send a couple of senoirs in to AARP HQ with a video camera & see if they can get help setting up a senior brothel. I say that AARP woild give them help
I just got an invitation to join. I wrote “no thanks, I don’t support Obama”, then stuffed all of the mailing information back into their prepaid envelope and let them pay to get it back.
I also did the same thing with the Sierra club invite. Another lefty wacko group.
AARP lost a lot of members lately with their stand on Obamacare. Now they will lose thousands more. When will the population finally get it that Obama’s plans ALL include payback to the ones who got him elected and reparations for the descendants of slaves? He is beholden to Unions, AARP, black panthers, ACORN, et al. Pay them back first, then if there is anything left over for normal average citizens, maybe they can get some of it. Right. This corrupt administration needs to be disinfected from the inside out…and immediately. There is no vaccine for this and it is spreading fast.
Would this really be news?
C’mon. I’d say every major organization supporting Obamacare is getting something.
Why else would such a ridiculous concept be supported?
RWR
http://www.rightwingrocker.com
Hmmm, IF I were over 50, which I am not admitting to, I would say I never joined AARP because of their political activities and instead I joined the American Seniors Association as recommended by Dick Morris. It is also less expensive.
This is an excellent idea as many of you have mentioned in this thread. I will never join AARP. I hope this bites them hard where it hurts – in their bank account!
cut the cancer out and save the body…535 citizens are holding hostage 300 million…so much for a democratic replublic…2010/2012 refresh the entire bunch and do it every single election cycle….
I actually pointed this out much earlier (I was probably misunderstood though).
Notice now when you see a Medicare commercial for United Health (the company that uses the AARP name – that language I just used has to be used like that or you are subject to violations of copyright infringement).
For the past 5 years they have promoted their Medicare Advantage product (the one that has the AARP name on it – not ‘endorsed by’, not ‘the AARP plan’). Now all their commercials are about the basic supplement plan.
I anticipated this 5 years ago when I was writing a lot of MA plans. Now I offer the Mutual of Omaha plan that is very inexpensive and covers everything. For 75 bucks a month, you go to any hospital and any doctor and pay nothing (no co pay, no deductible, you pay nothing).
call me if you want to switch. I recommend traditional supplement plan F because the government is going to cut it eventually. If not now, then within 10 years. It was always inevitable.
someone smarter than me explain this:
the moveon.org “sick of it” rallies targeted United Health Care. AARP partners with United. why would they target them? what was the real motive here?
http://insurance.lovetoknow.com/Medical_Insurance_AARP_United_Health_Care
About AARP
AARP is a nonprofit, nonpartisan membership organization that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. AARP does not endorse candidates for public office or make contributions to either political campaigns or candidates. We produce AARP The Magazine, the definitive voice for 50+ Americans and the world’s largest-circulation magazine with over 35.5 million readers; AARP Bulletin and AARP Bulletin Today, the go-to daily news source for AARP’s 40 million members and Americans 50+; AARP Segunda Juventud, the only bilingual U.S. publication and multimedia brand dedicated exclusively to the 50+ Hispanic community; and our website, AARP.org. AARP Foundation is an affiliated charity that provides security, protection, and empowerment to older persons in need with support from thousands of volunteers, donors, and sponsors. We have staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.
the ‘it’ I refer to is Medicare Advantage. No matter what, it is too much for politicians to overlook. They are going to cut Medicare Advantage payments. Anyone with half an understanding about how all this works knew it was going to happen.
They will never cut the traditional supplement plans (they are private plans that don’t get government subsidies).
by the way, United Health Care and United Health Group are the same company, as far as I can tell.
http://www.uhc.com/
http://www.unitedhealthgroup.com/main/default.aspx
The AARP doesn’t have a plan. They don’t endorse a plan, they don’t promote a plan, they don’t partner with for a plan.
When I took the class to allow me to offer the United MA plan 5 years ago their lawyers made sure that I never said ‘the AARP plan’, or ‘endorsed by AARP’. The only thing you can say is the plan with the AARP name on it.
As in, if you watch the commercials, the guy says United Health Care Medicare Advantage plan – the only plan with the AARP name on it.
Everything in this industry is highly regulated. EVERYTHING. Especially Medicare. CMS was on, up, and inside everyone’s A** about their rules on MA plans.
This is the reason I was so angry at Obama saying that the AARP ‘endorsed’ his plan. If I had said that to my clients, I would have lost my license. Obama gets to say it and chastise those who criticize him for saying what has been illegal for anyone else to say since the inception of the program.
AARP is a fraud.
Well the MSM failed to talk about the edict or probe and it is going to be interesting if they do in the next few days.
A society is best judged by how it treats the most vulnerable in our society.
For you Democrats out there, think back to the values of Hubert Humphrey, John Kennedy, etc. Study their policies and comments regarding the unborn, the poor and the elderly.
Compare that with what your party has become. If you have any soul left, I think it is time to start searching it for what you need to be doing.
AARP has dropped to the relevance of MADD. Both organizations are now filled with hired guns trying to make a bundle for themselves by playing politics with formerly useful services.
I was at the 9/12 march and so was American Seniors Assosiation. I don’t know what will be the best alternative to AARDVARP but ASA had my vote as of that day. Thanks for the video Mark Harvey. 75,000 attendees my ars. I have never been so motivated in my life, and it won’t fade. The Evil One is apologizing for the US at the UN. We need to send him out a here on a plane with kadaffy…
Why are you stopping with the AARP? Try the AMA and the American Association of Family Practice. Both of these have received political favors or are in line for favored payments. As a physician I know that these organizations will benefit and that the primary doctors will get the lions share of the payments. Plus the ineffective and expensive “preventive care” will be channeled through them.
Also, as a physician, I can assure you that United Health Care is one of the worst of insurances. They commonly refuse to pay for procedures, leaving the patient with the bill.
I sent my card in and told them I would not belong to a group that supported Obama’s health care proposals. Now I am still getting mail from them wanting me to join. Now I will just send empty envelopes back to them and cost them some money.
I innocently joined AARP when I became eligible 23 years ago. I did benefit from a few discounts on motel rates but I will not be renewing my membership.
Years ago two organizations began working in tandem to provide quality healthcare to a large group of people; medical insurance AARP United Health Care is now a powerful team, offering important health care coverage to a large group of seniors. United Healthcare offers several suitable health care options to AARP members including programs designed specifically for Medicare.
http://insurance.lovetoknow.com/Medical_Insurance_AARP_United_Health_Care
UnitedHealthcare is an operating division of UnitedHealth Group, the largest single health carrier in the United States.
https://www.sendd.com/~webdrop/ezproxy/200904/UNH_2008_AR_FINAL.pdf
We support the
principle of universal coverage for all Americans.
AARP® MedicareComplete® Plans and AARP® MedicareComplete® Rx Plans:
The AARP® MedicareComplete® plans are SecureHorizons® MedicareAdvantage plans insured by or covered by an affiliate of UnitedHealthcare, an MA organization with a Medicare contract. The AARP® MedicareComplete® plans are available to all Medicare beneficiaries, including both members and non-members of AARP. The SecureHorizons and MedicareComplete marks are trademarks or registered trademarks of United Healthcare Alliance, LLC and its affiliates.
AARP® MedicareRx Plans:
These Medicare Prescription Drug Plans (PDPs) are insured by United HealthCare Insurance Company or United HealthCare Insurance Company of New York for New York residents (together called “UnitedHealthcare”) UnitedHealthcare receives rebates from drug manufacturers that it passes on to its enrollees through reductions in premiums and to Medicare to reduce Medicare program costs. UnitedHealthcare contracts with the Federal government as a PDP sponsor. All decisions about prescription drugs are between you and your physician or other health care provider.
AARP® Medicare Supplement Insurance Plans:
These plans are insured by United HealthCare Insurance Company, Fort Washington, PA (United HealthCare Insurance Company of New York, Islandia, NY for New York residents.) Not connected with or endorsed by the U.S. Government or the Federal Medicare Program. Policy Form No. GRP79171 GPS-1 (G-36000-4). In some states, plans may be available to persons eligible for Medicare by reason of disability. All plans may not be available in all states/areas. This is a solicitation of insurance. See the information on this web site for details about benefits, costs, eligibility requirements, exclusions, and limitations.
AARP® Medical Supply Services:
AARP Medical Supply Services are provided by Prescription Solutions, the licensed pharmacy approved to provide Medicare-reimbursed medical supplies. Prescription Solutions is an affiliate of United HealthCare Insurance Company
http://www.aarphealthcare.com/common/disclosure.aspx
is aarp in washington d.c.? enough said, it’s crooked. no one and nothing in that area is anything but crooked. k street, congress, all the agencies and regulatory pork b.s.ers. just like your state and city gubmints, the people that a law will protect or enrichen write that law, bribe the politburo, and bob’s your uncle you have a law where you can’t install flex pipe between a faucet and the house plumbing, it must be hard piped (read that plumbers union installed). or look at the tax breaks given to cruise lines that stop in a foriegn country, ever wondered why on a 3 day cruise you had to stop in the bahamas? the irs knows.
One thing about AARP I don’t understand; Medicare + AARP or other supplemental has the seniors pretty well covered now.
.
So why are they on the reform bandwagon? Not for the seniors, but maybe to expand there insurance offerings to the under 65 crowd. It represents a much bigger market, and is more profitable, since by and large the under 65 folks are healthier.