AARP’s Billion Dollar ObamaCare Windfall
So this is why they lobbied for the crappy bill: AARP’s billion dollar Obamacare windfall.
Almost half of the $500 billion in ObamaCare’s Medicare cuts come out of Medicare Advantage. The cuts don’t kill the program, but they mortally wound it. CBO estimates that the Medicare Advantage program will be cut in half, causing over 7 million seniors to lose their health care coverage. They will be forced to return to traditional Medicare and, in most cases, will need to purchase Medi-Gap coverage.
Using very conservative assumptions (AARP keeps its current share of the Medi-Gap market and premiums don’t rise), this increase in the Medi-Gap market will generate more than $100 million a year in additional license fee revenue for AARP. Over a billion dollars every decade. Keep in mind, this revenue is simply for using AARP’s name, so it is almost pure profit.
So this is why they lobbied for the crappy bill: AARP’s billion dollar Obamacare windfall.
Almost half of the $500 billion in ObamaCare’s Medicare cuts come out of Medicare Advantage. The cuts don’t kill the program, but they mortally wound it. CBO estimates that the Medicare Advantage program will be cut in half, causing over 7 million seniors to lose their health care coverage. They will be forced to return to traditional Medicare and, in most cases, will need to purchase Medi-Gap coverage.
Using very conservative assumptions (AARP keeps its current share of the Medi-Gap market and premiums don’t rise), this increase in the Medi-Gap market will generate more than $100 million a year in additional license fee revenue for AARP. Over a billion dollars every decade. Keep in mind, this revenue is simply for using AARP’s name, so it is almost pure profit.