aarp latest to receive obamacare break
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8/6/2019 AARP Latest to Receive Obamacare Break
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May 20, 2011
AARP latest to receive Obamacare break
The Daily Caller has learned that the Department of
Health and Human Services (HHS) rate review rules,
which it finalized on Thursday, exempt “Medigap”
policy providers, like the American Association of
Retired Persons (AARP), from oversight when such
providers increase payment rates for their
supplemental insurance plans.
Insurance providers who aren’t exempt from
Obamacare’s rate review rules are required to
publicly release and explain some health care
payment rate increases.
The AARP is the nation’s biggest seller of Medigap policies, or supplemental healthcare plans that add
onto what Medicare won’t cover for seniors. The senior citizens interest group advocated for
Obamacare to include an attack on Medigap policies’ biggest competitor, Medicare Advantage.
Though the White House and HHS dismiss allegations of political favoritism when it comes to who’s
getting exceptions from the new health care regulations – such as in the recent uproar over the
disproportionate number of Obamacare waivers that went to companies in House Minority Leader
Nancy Pelosi’s district — Obamacare critics say the mere appearance of the administration helping
friends is disturbing.
The appearance of favoritism exists with the new AARP exemptions, too. Senate Majority Leader Harry
Reid and Sens. John Kerry, Massachusetts Democrat, and Max Baucus, Montana Democrat, wrote to
HHS Secretary Kathleen Sebelius last October asking her not to do what HHS just finalized today – that
is exempt Medigap policies from the HHS rate increase oversight.
“While Medicare Advantage premiums are declining, we are hearing disturbing stories from
beneficiaries across the country about excessive premium increases for Medigap supplemental
insurance policies,” Reid, Baucus and Kerry wrote to Sebelius on Oct. 6.
“For example, some beneficiaries enrolled in the United of Omaha Life Insurance Company will see
their Medigap premiums increase by approximately 40 percent between 2010 and 2011,” the letter
read. “An increase of this magnitude raises serious concerns about premium-setting practices and rate
review procedures in place for Medigap policies.”
Instead of listening to three top Senate Democrats, the Obama administration decided to go ahead
anyway with the Medigap exceptions from rate increase reviews.
The AARP was a driving force behind getting Obamacare through Congress, contributing a large sumto the $121 million advertising campaign pushing it, and spending millions more lobbying for it on
Capitol Hill.
The senior citizen advocacy organization stands to make huge profits from Medicare Advantage cuts
and from the exemptions it will benefit from when it comes to the Medigap plans sold under what AARP
CEO A. Barry Rand calls the AARP’s “for-profit side.”
The AARP’s support of Obamacare during the debate over the legislation raised lots of eyebrows
nationwide, as President Obama called for $313 billion in cuts to Medicare to push the plan through.
Seniors weren’t happy about it, and many ripped AARP representatives at town hall meetings
nationwide.
Now, though, it’s clear that the AARP is set to make millions, if not billions, of extra dollars in Medigap
plan sales moving forward because they’ve effectively knocked out their biggest competitor, MedicareAdvantage, through Obamacare.
TAGS: AARP, DEPARTMENT OF HEALTH AND HUMAN SERVICES, OBAMACARE
Published: 10:43 PM 05/19/2011 | Updated: 10:22 AM 05/20/2011 Tweet
By Matthew Boyle - The Daily Caller
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Jimmy S
AARP is not a provider of health insurance. It licenses its name to United Health Care which uses the AARP brand tomarket both Medicare Gap and Medicare Advantage policies. While it licenses its name, AARP does not recommendhealth related products, services, insurance or programs and it strongly encourages it members to evaluate theirindividual needs.
cramos
Right on! take away AARPs not for profit status!!!
Jimmy S
AARP which licenses its name is not a tax exempt organization. It does pay taxes. However, the AARPFoundation, a separate legal entity, is a private non-profit tax exempt organization.
lukuj
No surprise here! AARP endorsed Obamacare, but does not itself want to be included. I predict that before all theexemptions are over, most of those who helped to saddle us with this terrible plan will be exempt from it. I stronglysuspect they were promised these exemptions BEFORE they lent their support and that they actually knew what ahorrible law it was and that it would NOT do at all what people were told it would do.
heathermmc
AARP endorsed plans are some of the highest plans you can get. When seniors learn there are cheaper alternativesfor the exact same plan (Plan F), they switch. Keep your money in your pocket and work with a broker to find the bestplan in your area.
Heatherhttp://www.mymedigapconsultant.com
dallas yankee
We all know that AARP is not in the business to help seniors, but in business to sell insurance. Boycot the AARP,send your cards back
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