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AARP Profits from ObamaCare at the Expense of American Seniors, New Report Shows
A new report reveals that AARP stands to make $1 billion over 10 years from ObamaCare, the AARP-backed health care law that funds the creation of a massive new entitlement program at the expense of seniors. Led by Reps. Wally Herger (R-CA), Dave Reichert (R-WA) and Charles Boustany (R-LA), Ways & Means Committee Republicans today unveiled this report – entitled “Behind the Veil: The AARP America Doesn’t Know” – which exposes AARP’s apparent conflict of interests and raises questions about whether the organization is using its tax exempt status to increase profits at the expense of American seniors.
As the Associated Press reports, Republicans turned over the report’s findings to the IRS and have called on the agency to investigate whether AARP’s tax-exempt status should be revoked:
“AARP lobbied for the new health care law and now it stands to profit, Republican lawmakers charged Wednesday as they called for the IRS to investigate whether the powerful interest group deserves to keep its federal tax exemption.
“Three veteran GOP representatives released a report that estimates the seniors lobby could make an additional $1 billion over 10 years on health insurance plans whose sales are expected to pick up under the new law. They also questioned seven-figure compensation for some AARP executives.”
Among the key findings from the Ways & Means Committee report are:
- As a result of the new health care law, the Obama Administration estimates more than seven million seniors will lose their current Medicare Advantage plans, resulting in a massive migration of seniors to Medigap plans. AARP is the nation’s leading provider of Medigap plans and has a contract in which AARP financially gains for every additional Medigap enrollee.
- Based on low, mid and high-range estimates, AARP stands to financially gain, over and above the millions of dollars they currently receive from United, between $55 million and $166 million in 2014 alone as a result of new Medigap enrollees stemming from the health care law’s cuts to MA, which AARP strongly endorsed.
- Under the mid-range estimate and under their current contract, AARP’s financial gain from the health care law could exceed $1 billion during the next 10 years. This is because AARP will see their royalty payments increase as seniors are forced out of MA plans and buy AARP Medigap plans instead.
Before its enactment last year, then-Speaker Nancy Pelosi (D-CA) famously said we had to pass the bill to find out what’s in it. Today’s report reveals just what AARP is getting as a result of endorsing ObamaCare, a law that reduces choice and access for seniors it claims to represent.