Thursday, November 5, 2009

AARP- what do they really stand for?


AARP endorses the new House health care bill. Of course. Cuts to Medicare funding which are certain to come with this bill could mean a big opportunity for the organization. AARP does not live on membership alone. They are also in the insurance business. Add to that the fact that AARP has been criticized for years for it's inability to keep its business and consumer interests separate and anyone can see that they do not necessarily have the best interests of members in mind- at least when it comes to health care reform.

Democratic proposals to slash reimbursements for Medicare Advantage, are expected to drive up demand for private Medigap policies like the ones offered by AARP. United Health Care which provides most of the medigap health insurance marketed under the AARP brand, brought in $400 million last year alone in royalties. Compare that figure to the $249 million they collected in membership dues for the same period of time. AARP also brings in medigap royalties through Aetna Life Insurance, Genworth Life Insurance and Delta Dental.

It seems to me that AARP the business has far more to gain from this government program than any of its members do. What do you think?

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