AARP to Get $1 Billion from ObamaCare

Several Republicans on the Ways and Means Committee this afternoon issued a report regarding AARP and its business activities. …  Specifically, the report found that while AARP’s Medicare Advantage and Part D plans receive a flat licensing fee from UnitedHealth Group regardless of the enrollment in their plans, AARP receives 4.95% of each Medigap premium dollar paid by senior citizens … Because of these unique contractual arrangements, AARP has NO financial incentive to expand Medicare Advantage but DOES have a financial incentive to expand Medigap enrollment — and Medigap enrollment will expand thanks to the Medicare Advantage cuts in the law.

Based on this information, and estimates of declines in Medicare Advantage enrollment thanks to the cuts in the health care law, the report estimates that AARP will receive between $55 million and $166 million in new revenue in 2014 alone — meaning the ten-year financial windfall received by AARP due to ObamaCare could total over $1 billion.

See Chris Jacobs’ full report here.

Comments (7)

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  1. Devon Herrick says:

    Under the ACA, the private plans that cover one-fifth of Medicare enrollees will lose $200 billion in fees. The physicians that treat Medicare patients are slated to lose $323 billion. But the AARP — the interest group that lobbies on behalf of seniors — could earn $1 billion over the course of a decade. That’s an example of interest group politics.

  2. Vicki says:

    This is disgraceful.

  3. Jeff says:

    Now I know why AARP sold out senior citizens. It was the money, stupid.

  4. Bruce says:

    Who knows? For a billion dollars I might sell out too.

  5. Rusty W. says:

    These people ought to be in jail. Surely this is illegal? It ought to be criminal.

  6. Ken says:

    Rusty, in their communications with the elderly, AARP has cetainly committed moral fraud. I don’t know if you can get them on anything more than that, however.

  7. Virginia says:

    It’s ironic. The organization that is supposed to be protecting citizens is the one that sells its soul.