AARP`s Tradition of Betrayal

Nonprofit in name only, "AARP is the equivalent of a Fortune 500 company, employing a staff of 2,419 employees, (incurring) $1.16 billion in operating expenses and overseeing annual revenues (well above) $1 billion," around 60% of which comes from so-called Medigap supplemental insurance sales.

According to Physicians for a National Health Program (PNHP), "Some of these products are total rip offs," so bad, in fact, that AARP was forced to withdraw its Essential Health Insurance Plan and Essential Plus Health Insurance Plan, developed by United Health Group and sold to 44,000 of its members.

PNHP calls AARP "part of the problem and not part of the solution. It is nothing but an insurance (and financial) broker disguised as an advocacy group - and they will never take on the health insurance industry. (It) represent(s) the insurance industry (and its own self-interest) rather than (its members and) the public welfare in discussions about health reform."

As a result, it's largely profit-driven offering 17 types of insurance reaping hundreds of millions annually in royalties. Millions more from selling drugs; other products and services including mutual funds; plus federal subsidies exceeding $80 million annually; and annual membership dues of $16 per year, $43 for three years, or $63 for five x 40 million members.

It's also active on Capitol Hill with a 50-person staff and a 2008 $28 million lobbying budget, much like major corporations and for the same purpose - profits at the expense of member interests, unaware how they're ill-served by an organization claiming to be their advocate.

AARP's Role in Enacting the Controversial Medicare Prescription Drug, Improvement and Modernization Act (MMA) of 2003 - the So-Called Part D

Costing tens of billions annually, passage came only after initially being defeated, followed by a three hour all-night suspending of proceedings to exert pressure and offer bribes because passage assured PhRMA big profits at the expense of seniors extorted top dollar for prescription drugs, not the substantial savings government-negotiated prices would have delivered. Yet AARP was one of its staunchest advocates.

The rest.

Source: Mathaba

Related:

AARP/UnitedHealth bait and switch - PNHP's Official Blog

Himmelstein replies to AARP falsehoods, distortions

AARP continues its attack on social insurance