AARP Gets Free Pass In Health Care Debate

Floor Speech

AARP Gets Free Pass In Health Care Debate

Ms. FOXX. Madam Speaker, does America's biggest senior citizens organization, AARP, get a free pass in the ongoing health care reform debate?

Speaker Pelosi recently called insurance companies ``immoral villains,'' and Senator Jay Rockefeller derided their tactics as ``rapacious,'' yet the majority has simultaneously relied on an organization that has received billions of dollars in windfall profits from those same insurers as an ``independent'' source to support their government takeover of health care--AARP.

The Democrat majority has even relied on AARP's support for legislation, S. 1776, that would increase the Federal debt by nearly $250 billion to fund physician reimbursements, even though the bill would raise seniors' Medicare premiums by over $60 billion. AARP opposed unpaid-for legislation as recently as December for the very same reason.

An analysis of Democrats' rhetoric and actions provides evidence why AARP may have changed its position. In exchange for its support of a government takeover of health care, AARP has received special considerations regarding several provisions in health reform legislation that could benefit the organization quite handsomely.

While the AARP Web site claims that the organization supports ``guaranteeing that all individuals and groups wishing to purchase or renew coverage can do so regardless of age or preexisting conditions,'' a review of the New York State Insurance Commissioner's Web site finds that AARP-branded Medigap coverage imposes a 6-month waiting period for individuals with preexisting conditions. Yet section 111 of H.R. 3200 would exempt Medigap policies from new limits on preexisting condition restrictions, thus allowing AARP to continue to deny Medigap individuals with serious health conditions.

The health reform bill approved by the Senate Finance Committee would eliminate the tax deductibility for all insurance company executive salaries over $500,000. However, as drafted by the committee, the legislation would exempt AARP from this requirement, even though fully 38 percent of its $1.1 billion in 2008 revenue came directly from royalty fees paid by United Health Care--more than AARP received in membership dues, grant revenue, and private contributions combined.

But for Chairman Baucus' exemption, AARP salaries would in fact be subject to the penalties in the Finance bill. In 2008, then CEO William Novelli received total compensation of $1,005,830, more than 78 times the average annual Social Security benefit of $12,738.

According to a story published today in the Washington Post, AARP collected $650 million in royalties and other fees last year from the sale of insurance policies, credit cards, and other products that carry the AARP name. One of the main products that AARP pushes are so-called Medigap insurance policies for senior citizens. These policies supplement existing Medicare policies that seniors already have.

So what's the big deal? Well, in case you missed it, AARP is helping push the Democrats' big government version of health care reform. They've been a vocal proponent of the government-run health care proposal before Congress. Interestingly, the proposal before Congress slashed funding for a Medicare program called Medicare Advantage. This program is especially popular with seniors in my district. About 40,000 seniors in my district enjoy the benefits of a Medicare Advantage plan, but these plans will be killed off under the Democrats' government takeover of health care, and AARP has been pushing this brand of health care reform.

AARP has the right to offer services to its members, but pushing for a version of health care reform that will hurt millions of seniors who have Medicare Advantage plans and that will almost certainly increase shares of AARP's Medigap policies is a very dangerous conflict of interest.

AARP has hundreds of millions of dollars in insurance revenue on the line in today's health care debate. I think America's seniors deserve to know the facts about how health care reform will affect them, and it appears that AARP may have a few too many dogs in this race to be an impartial source of information.

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