Why AARP Supports Government Run Healthcare
27th October 2009
Read it.
Today’s Washington Post sheds some light on AARP’s decision, and why it has spent more than $37 million on lobbying since January 2008.. It emergest that AARP stands to make millions if this legislation is passed. The Post reports that AARP collected more than $650 million in royalties and other fees last year from the sale of insurance policies, credit cards and other products that carry the AARP name, while former AARP chief executive William Novelli received more than $1 million in compensation last year.
Proposals before congress would significantly increase AARP’s already bulging coffers. An insurance-mandate is the most obvious of these – forcing people to buy insurance they don’t want and don’t need will increase insurance companies profits, which will flow onto AARP. What’s more however, is that the Senate Finance Committe Bill specifically excludes AARP from limits on the tax tax deductibility for all insurance company executive salaries over $500,000. Other parts of the proposal, such as the “windfall profits” tax, also would not apply to AARP, once again making it more attractive for insurance companies to funnel campaigns through the AARP. Most insiduously,under the Democrat bill, seniors could pay as much as 20 cents more out of every premium dollar to fund “kickbacks” to AARP-sponsored Medigap plans.