AARP Raises Premiums - Advocacy Clashes With Reality

Contrary to Democratic politician's promises when they jammed Obamacare through the Senate and Congress, claiming that when the public found out all that was in the bill they would start to support it, opposition is rising as the public becomes aware of what Washington Democrats actually passed and Obama signed into law. Caption & Image Credit: wakeupamericans-spree.blogspot.com

AARP Raises Premiums - Advocacy Clashes With Reality

Truth has a funny way of dispelling the aggressive distortion of an advocacy point-of-view.

A classic case in point has popped up over at the insurance and liberal advocacy organization American association of retired persons, AARP. AARP is a non-profit organization which helps people above the age of 50 to lead a peaceful life both health and finance. Most famous of AARP programs is AARP insurance.

AARP is now telling its employees that insurance costs will rise by 8 percent to 13 percent next year, partly as a result of the ObamaCare law it supported.

This excerpted and edited from the Washington Times -

Obamacare spurs AARP to raise premiums
By Ricardo Alonso-Zaldivar - Associated Press - 6:35 p.m., Thursday, November 4, 2010

AARP's endorsement helped secure passage of President Obama's health care overhaul. Now the seniors' lobby is telling its employees their insurance costs will rise, partly as a result of the law.
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AARP added that it is changing co-payments and deductibles to avoid a 40 percent tax on high-cost health plans that takes effect in 2018 under the law. Aerospace giant Boeing also has cited the tax in asking its workers to pay more. Shifting costs to employees lowers the value of a health care plan and acts like an escape hatch from the tax.

"Most plan co-pays and deductibles have been modified," Jennifer Hodges, AARP's director of compensation and benefits, wrote employees in an Oct. 25 e-mail. "Plan value changes were necessary not only from a cost-management standpoint, but also to ensure that AARP's plans fall below the threshold for high-cost group plans under health care reform."
Reference Here>>

Ever since Barack Obama took the office as the 44th President of the United States, AARP endorsed the efforts of the Democrat political party in its efforts at healthcare reform. These efforts had little to do with improving a free market approach and everything to do with having the Government become the chief decider on what insurance will look like ... even if the Government has to become the "Single-Payer" in the insurance equation.

The chief reason AARP was an advocate on ObamaCare can be found where AARP makes their money ... in Medigap insurance coverage. Medigap plans are a cash cow for AARP and if people don't need them because they can enroll in Medicare Advantage plans, that's a revenue loss for AARP. Obamacare helps to do away with Medicare Advantage plans.

While the organization has some partnering arrangements with Medicare Advantage plans, they provide a fraction of the revenues to the organization that Medigap does.

Second, if Medicare's benefits are cut by $400 billion or more, seniors will have an ever greater need for Medigap coverage.

"There's an inherent conflict of interest," former AARP executive Marilyn Moon says of AARP's royalty arrangements. "They're ending up becoming very dependent on sources of income."

Tens of thousands of seniors have resigned from AARP, many of them cutting up their membership cards to protest the organization's promotion of health reform.

The new chief executive officer of AARP, Barry Rand, who was a strong supporter of President Obama during last year's presidential campaign, says AARP is not protesting the Medicare cuts because reducing waste and fraud in Medicare will make the program stronger over the long term.

The 40 million-strong AARP represents people 50 and older, including retirees on Medicare and Social Security. Its endorsement of President Barack Obama's health bill came at a critical time last year, just days before a vote on the House floor.

"The [insurance rate]impact on [our]AARP employees is not a factor at all in our policy-making, which is directed at the impact on our membership and on all older Americans," said said David Certner, AARP legislative affairs director.

One has to ask ... how many 50 years of age and older employees does AARP actually have?

We , at MAXINE, believe - AARP ... the American association of retired persons, is less about protecting the interests of retired persons than it is at protecting its cash cows in the insurance business.

Obama Administration: Horse Trading For Healthcare Control

Nancy Pelosi couldn’t have announced the new House healthcare reform bill, the Affordable Health Care for America Act (H.R. 3962), with any more pomp and circumstance. It was certainly more impressive than the Senate’s mouse-like rollout, apparently intended to avoid rubbing salt in the Baucus “bipartisanship” wound. H.R. 3962 is definitely a major milestone in attempting to reform our broken system-less healthcare; it’s historic, certainly. But no, it’s not the best our legislators could do. Image Credit: Wikipedia

Obama Administration: Horse Trading For Healthcare Control

Many have said it over these last several months ... "It's the Chicago way." What pundits have been reacting to is the way Barack Obama and the Administration around him negotiate in bad faith in order to get what they want, politically, even when the outcome will create more damage to our Constitutional country than fix the problems they say they are trying to address.

Just this last week, President Obama was able to come to the microphones Friday and tout the fact that he has received the endorsements of some pretty recognizable health care and special interest advocacy groups in the run up to the close approval of the House of Representatives Bill for the radical overhaul of America's health care insurance industry - HR-3962.

This excerpted and edited from The Doc Is In -

Health Care Reform 2009: Why Did the AMA & AARP Back Obamacare?
by Dick Morris & Eileen McGann

Here are the deals:

* The American Medical Association (AMA) was facing a 21 percent cut in physicians’ reimbursements under the current law.

Obama promised to kill the cut if they backed his bill. The cuts are the fruit of a law requiring annual 5-6 percent reductions in doctor reimbursements for treating Medicare patients. Bravely, each year Congress has rolled the cuts over, suspending them but not repealing them. So each year, the accumulated cuts threaten doctors and as of this point in time, they have risen to 21 percent. With this leverage as blackmail, Obama compelled the AMA to support his bill … or else!

* The AARP got a financial windfall in return for its support of the healthcare bill.

Over the past decade, the AARP has morphed from an advocacy group to an insurance company (through its subsidiary company). It is one of the main suppliers of Medi-gap insurance, a high-cost, privately purchased coverage that picks up where Medicare leaves off. But President Bush-43 passed the Medicare Advantage program, which offered a subsidized, lower-cost alternative to Medi-gap. Under Medicare Advantage, the elderly get all the extra coverage they need plus coordinated, well-managed care, usually by the same physician. So more than 10 million seniors went with Medicare Advantage, cutting into AARP Medi-gap revenues.

Presto! Obama solved their problem. He eliminates subsidies for Medicare Advantage. The elderly will have to pay more for coverage under Medigap, but the AARP — which supposedly represents them — will make more money. (If this galls you, join the American Seniors Association, the alternative group; contact sbarton@americanseniors.org. This e-mail address is being protected from spambots. You need JavaScript enabled to view it).

* The drug industry backed ObamaCare and, in return, got a 10-year limit of $80 billion on cuts in prescription drug costs.

This represents chump-change to HR-3962's almost $3 trillion projected costs over the next decade. They also got administration assurances that it will continue to bar lower-cost Canadian drugs from coming into the U.S. All it had to do was put its formidable advertising budget at the disposal of the administration.

* Insurance companies get access to 36-40 million potential new customers.

When the Senate Finance Committee lowered the fine that would be imposed on those who don’t buy insurance from $3,500 to $1,500, the insurance companies jumped ship and opposed the bill, albeit for the worst of motives - so the fine stood.

The only industry that refused to knuckle under was the Medical Device Makers (MDM). They stood on principle and wouldn’t go along with Obama’s blackmail strategy for an endorsement. The Senate Finance Committee reacted to this stance by imposing a tax on the MDM marketplace targeting medical devices such as automated wheelchairs, pacemakers, arterial stents, prosthetic limbs, artificial knees and hips and other necessary accouterments and consumables of healthcare.
Reference Here>>

So, these endorsements were not freely given, but were bought and paid for by an administration that is intent on passing its "Control of Healthcare" program at any cost. This is not the American way, you know, for the good of the country ...

... It's the Chicago way!