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Obamacare Is Billion-Dollar Cash Cow for AARP, GOP Report Says, Pressing for Probe

Thursday, 31 Mar 2011 11:32 AM

 
 
The powerful seniors lobby AARP stands to make more than a billion dollars over the next 10 years from the sale of supplemental Medicare policies under Obamacare, a House GOP report reveals. The report from Reps. Wally Herger, R-Calif., and Dave Reichert, R-Wash., alleges the Affordable Care Act will result in great demand for the Medigap policies that have the AARP stamp of approval, The Washington Post reported.

The House Ways and Means Committee’s health and oversight subcommittees have scheduled a joint hearing to question AARP officials about the group’s financial concerns. “This hearing is about getting to the bottom of how AARP’s financial interests affect their self-stated mission of enhancing seniors’ quality of life. It is important to better understand how AARP’s insurance business overlaps with its advocacy efforts and whether such overlap is appropriate,” Herger told the Post.

AARP President Lee Hammond rejected the allegations. “AARP has long maintained that we would gladly forgo revenue in exchange for lifetime health and financial security for all older Americans,” the Post quotes Hammond as saying.

The group, which began in the 1950s as American Association of Retired Persons, has been praised and targeted by both Republicans and Democrats in the past. Democrats assailed the organization when it endorsed President George W. Bush’s expansion of prescription drug benefits, according to the Post.

AARP claims 37 million members, spent $22 million on lobbying last year, and reported $1.4 billion in revenue in 2009, the Post reported.

Obamacare Is Billion-Dollar Cash Cow for AARP, GOP Report Says, Pressing for Probe
 
The Report AARP Doesn’t Want You to Read

March 31, 2011 | Posted by Michael Ricci | Permalink

AARP may have lost thousands of members for supporting ObamaCare, but it appears to have gained quite a windfall in the process.  That’s one of several striking conclusions in a new report released by members of the House Ways & Means Committee.  Titled “Behind the Veil: The AARP America Doesn’t Know,” this investigative report details how AARP, considered “one of the most formidable lobbying forces in Washington,” stands to rake in more than $1 billion over the next ten years on account of a health care law that is forcing millions of seniors off the coverage they like.

The report is already reverberating around the country, giving momentum to calls for the IRS to investigate AARP’s tax-exempt status:

·         http://waysandmeans.house.gov/News/DocumentSingle.aspx?DocumentID=232179“Did AARP, the nation’s leading advocacy group for older Americans, fight for last year's federal health-care law to the detriment of its members?,” The Seattle Times asks.  “Guilty, according to U.S. Rep. Dave Reichert and his fellow House Republicans — and they contend AARP had a motive.  On Wednesday, three members of the House Committee on Ways and Means released a report detailing what they called troubling conflicts over the nonprofit group’s multimillion-dollar foray into for-profit insurance businesses.”

·         “U.S. Rep. Charles Boustany and other Republicans said Wednesday they will call on the Internal Revenue Service to investigate whether AARP has abused its tax-exempt status and misled millions of its senior-citizen members,” the Lafayette (LA) Daily Advertiser reports.  “‘It’s about fairness and transparency,’ Boustany said. ‘It's about accountability to taxpayers.’”

·         The report is “a fascinating read,” according to The Fiscal Times, which calls the scale of AARP’s insurance dealings “breathtaking.”

·         “The subcommittee … found that AARP’s haul from sponsoring insurance plans have nearly tripled in recent years to $657 million a year,” Fox News reports.  “What does it do with all that money?  AARP has charitable foundations, but the report says the contributions to them have barely moved…”

·         “The dual nature of AARP has raised questions before,” the Associated Press notes. 

Unsurprisingly, Washington Democrats “immediately leapt to AARPs defense.”  After all, the AARP controversy is re-igniting questions about the payoffs, kickbacks, and backroom deals that helped make ObamaCare law over the objection of the American people.  AARP will have its day in court tomorrow when Ways & Means holds a hearing where the organization’s CEO is scheduled to testify.


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