AARP’s backing of the healhcare bill is puzzling, as the bill severely cuts benefits for seniors and threaten millions of seniors with being forced from their current Medicare Advantage plans.
It also threatens to erode the AARP membership as a large percentage have voiced their opinion against the bill.
Why did the AARP throw its support behind the bill despite the provision to fund the bill by cutting an estimated $500 billion in cuts to Medicare, a system many seniors have indicated that they would like to preserve.
What’s becoming apparent is that the AARP got a financial windfall in return for its support of the 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. President Bush 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.
Part of the cost reduction is the elimination of 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.
So now as the AARP membership starts to decline in protest, other associations are quickly jumping in to welcome the disgruntled members.
Here’s a list of a few of alternatives that are actively recruiting new members:
A one-year membership with the American Seniors Association is only $15. And, we’ll be happy to add your spouse to your membership absolutely free. If you are an American Senior who believes in individual liberty, and is looking for a different sort of association, we hope you’ll choose the American Seniors Association. We want to work for you. CLICK HERE TO JOIN
We’re fighting every day to fight for seniors and retirees by working to, among other things, eliminate the death tax and save social security for future generations. It is people like you that help us to continue the fight.
The Association of Mature American Citizens (AMAC) is here to protect your interests, and to offer an alternative perspective on how to best solve the problems seniors face today. AMAC will be on your side when it comes to fighting high taxes, which are especially harmful to those living on a fixed income. You can count on AMAC to speak out to preserve the values that helped make America a great nation.
We support competition. The AARP may have inadvertently created viable competition over its support of the healthcare reform bill.