How the AARP Made $2.8 Billion By Supporting Obamacare's Cuts to Medicare
"...Obamacare cuts $716 billion from Medicare in order to pay for its $1.9 trillion expansion of coverage to low-income Americans.
It’s one of the reasons why seniors are more opposed to the new health law than any other age group.
So why is it that the group that purports to speak for seniors, the American Association of Retired Persons, so strongly supports a law that most seniors oppose?
According to an explosive new report from Sen. Jim DeMint (R., S.C.), it’s because those very same Medicare cuts will give the AARP a windfall of $1 billion in insurance profits, and preserve another $1.8 billion that AARP already generates from its business interests.
Here’s how it works.
AARP isn’t your every-day citizens’ advocacy group.
The AARP is also one of the largest private health insurers in America.
In 2011, the AARP generated $458 million in royalty fees from so-called “Medigap” plans, nearly twice the $266 million the lobby receives in membership dues...
...But the AARP aggressively, and successfully, lobbied to keep Medigap reforms out of Obamacare, because AARP receives a 4.95 percent royalty on every dollar that seniors spend on its Medigap plans.
Reform, DeMint estimates, would have cost AARP $1.8 billion over ten years..."
Read it all!