Has AARP been given an unfair advantage by the Federal Government to corner the Senior Citizens market? Is there a conflict of interest between being a Non-Profit and a For-Profit, while lobbying for Seniors and at the same time for their own financial gain?
I received an email on September 26th, 2009, from Organizing for America, a project of the Democrat National Committee. The first sentence really hit home and in my opinion, says it all:
In many ways, the fight for health insurance reform comes down to a battle over information.
From the lips of the Democrats … It’s all about information and who controls what information we receive!!!
This statement, which came the same week that Senate Finance Committee Chairman Max Baucus, D-Mont. launched an investigation of Humana Inc., for sending information to their Medicare Advantage policy holders telling them of the potential negative consequences of Baucus bill. After Baucus demanded an investigation, the Centers for Medicare and Medicaid sent a notice to all companies that sell private Medicare coverage saying at least one insurer was misleading those customers about the proposed legislation, it told the companies “to immediately discontinue all such mailings to beneficiaries and to remove any related materials directed to Medicare enrollees from your Web sites.”
Baucus was upset because Humana told the truth! Here in part is what Humana sent in their letter to seniors:
“If the proposed funding cut levels [in the current health care legislation] become law, millions of seniors and disabled individuals could lose many of the important benefits and services that make Medicare Advantage health plans so valuable.”
Is the President, Senate and Congress misleading us and withholding information? According to the Congressional Chief Budget Officer, the information Humana sent out was pretty accurate.
As reported at googlenews.com, in part:
“WASHINGTON — Congress’ chief budget officer is contradicting President Barack Obama’s oft-stated claim that seniors wouldn’t see their Medicare benefits cut under a health care overhaul.
“The head of the nonpartisan Congressional Budget Office, Douglas Elmendorf, told senators Tuesday that seniors in Medicare’s managed care plans would see reduced benefits under a bill in the Finance Committee.
“The bill would cut payments to the Medicare Advantage plans by more than $100 billion over 10 years.
“Elmendorf said the changes would reduce the extra benefits that would be made available to beneficiaries.
There appears to be a nice cozy relationship between Baucus and Mr. Blum … According to an article in the Wall Street Journal:
“Mr. Blum has also banned all Advantage contractors from telling their customers what Mr. Elmendorf has just told Congress. Mr. Blum happens to be a former senior aide to Mr. Baucus and a health adviser on the Obama transition team.”
Not only do we have the head of the Congressional Budget Office confirming the truth in Humama’s mailing, others are speaking out:
Former Speaker of the House Newt Gingrich told Fox News’ Greta Van Susteren “that the cuts to Medicare Advantage, senior citizens would lose over 50 percent of their added value on Medicare under the Baucus plan.”
In the AARP September Advocate Newsletter. 1) AAPR has launched a new photo petition to remind Congress why older Americans need reform, they even offer a file to down load and you can take a photo of yourself holding a “support” card 2) They introduced yet another new way for you to take action and get the latest breaking news on our Health Action Now campaign – from your cell phone! 3) They are asking for more money which is needed to help them fight for health care reform 4) links to all their new TV, radio, and print advertisements to promote health care reform, 5) and a link to their web sitehttp://www.healthactionnow.org/where you can learn all about the MYTHS and learn the TRUTH.
With AARP’s continuation of it’s promotion of Health Care Reform, they seem to be unaffected by the Baucus Gag Order. There is no apparent need for them “to immediately discontinue all such mailings to beneficiaries and to remove any related materials directed to Medicare enrollees from your Web sites.” Either AARP didn’t receive this letter or since AARP pretty much supports the provisions in the Health Care bill that apply to Medicare/Medicare Advantage cuts, it simply doesn’t apply to them.
It is noteworthy that AARP was outspoken and took a strong position against Medicare’s enactment in 1965. Speculation was, their lack of support was due to their financial ties with Colonial Pen insurance company. In todays climate, it may appear that AARP is now a strong supporter of Health Care Reform due to their financial ties to the health insurance industry. In fact, a study by Harvard Medical School indicates just how much AARP stands to gain.
It estimates that companies with AARP contracts will likely get 10 percent of the new insurance market. With its royalty rate of 3.9 percent of premiums collected, AARP could receive $1.56 billion in additional royalties over the next decade.
Not only does AARP generate income from the sale of medigap policies, they also sell their membership lists and advertising space in its magazines to pharmaceutical and health insurance companies. Does any one find it curious that the liberals have demonized the insurance companies, yet they sing the praises of AARP?
Something is fundamentally wrong when the Federal Government steps in to limit freedom of speech and access of information to Senior Citizens, who are left to rely only on AARP provided information which supports the governments positions on how Seniors will be affected if this Health Care Reform Bill passes. Why do they not want us to hear opposing opinions, information or to even to know what the Congressional Budget Office projects the losses of benefits now provided by Medicare Advantage plans that are currently held by over 10 million Seniors? Has AARP and the Obama Administration made an agreement, behind closed doors? Has AARP become the “ONLY” government approved speaker for the best interest of Seniors?
You may be asking “what does this have to do with AARP having a financial conflict of interest”, which by the way isn’t the first time this question has been asked nor is this the first time people have questioned AARP’s Non-Profit status. I will continue to go into more detail about AARP in Part II and Part III. For a little more background you may want to watch the below video where Senator McConnell addresses: ” End Federal Gag Order on Medicare Cuts”
http://www.youtube.com/watch?v=K6rY3rxb60k
by Sandy from AARP Blog on October 4, 2009
Related Resources:
AARP Series: Obamacare: Cut the Elderly and Give to AARP – Part I
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