AARP stands to reap huge profits from Obamacare
During the Obamacare debate, I couldn’t understand why AARP would roll over on it’s membership and support a government take over of the nation’s healthcare system. All along in the back of my mind I figured it had to do either with a political advantage to be had, or money. It turns out that it was money.
The AARP stands to benefit to the tune of about $1 Billion over the next 10 years selling gap insurance coverage for senior citizens. In a report from the House Ways and Means Committee titled “Behind the Veil: The AARP that America Doesn’t Know” are details of the potential revenue gains for the AARP.
Here are a couple of highlights:
AARP’s revenue comes from royalty payments from insurance companies, membership dues, publication advertising, and government grants.
Since 2002 AARP revenue from membership dues has increased 32% to $60 million. During the same period income from royalties from insurance companies has increased 300% to $417 million.
As a result of Obamacare 7 million seniors will lose their current Medicare Advantage plans causing seniors to migrate to Medigap plans. Guess who is the largest provider of these plans? AARP. (That wasn’t a really hard one to guess was it?)
AARP received $97 million in government grants.
AARP is a tax exempt corporation. As a result of this information on AARP’s profits from royalties, their tax exempt status is being questioned by the congress.
$97 million in government grants, and they are bringing down millions each year in revenue from the insurance companies? I think I see $97 million that can be cut from the US budget!