Saturday, November 6, 2010
AARP Tells Employees That Their Health Care Premiums Will Rise in 2011
What at first seemed to be the case of the AARP endorsing something that would effectively harm the interests of its members became clear when delving a little deeper into the situation. With the reduction in government spending for Medicare, the insurance gaps for seniors would necessarily be greater, thus allowing AARP to sell additional insurance and gap coverage. In the end, this was only about increasing profits for the AARP instead of the desired mission of actually advocating for seniors. It was reported that anywhere up to 60,000 AARP members resigned in disgust over the AARP's endorsement of Obamacare accordingly.
Now, fast forward to October 25th when Jennifer Hodges, AARP's director of compensation and benefits, sent out an email to AARP employees, which was obtained by the Associated Press, informing them that the costs for their health care premiums would be increasing from 8 to 13 percent next year due to rapidly rising medical costs.
Ms. Hodges wrote in that email,
“Most plan co-pays and deductibles have been modified. Plan value changes were necessary not only from a cost management standpoint but also to ensure that AARP’s plans fall below the threshold for high-cost group plans under health care reform.”
Iowa Senator Chuck Grassley immediately responded in a written statement,
“AARP supported a partisan health care overhaul that cut Medicare by almost $500 billion. That will result in less choice, fewer benefits and decreased access to care for millions of its members. But now we hear that AARP’s members aren’t the only ones who will bear the brunt of the new health care law. Like companies across the country, AARP is shifting more costs onto employees in reaction to the health care overhaul. Despite their employer’s support, AARP employees are learning that the health care law is not going to address the top priority of making health care coverage less expensive. Supporters of the law tend to have tunnel vision and focus on how it will affect narrow groups of people, rather than recognizing that most people will just end up paying more. But the big picture is clear. Employers and employees nationwide will pay more for health care because of the new law.”
In the end, the unconstitutional Obamacare act was largely unwanted by the American people because it did not even address many of the issues that it was supposed to fix. It ultimately would only exacerbate the problems in rising health care costs. The AARP knew this would be the case, and still chose to endorse a bad law that was very much against the interests of it members. Now the employees of AARP that supported this law are beginning to see what it is they have wrought. I hate to say it, but we told you so!
Perhaps the AARP may be able to redeem itself somewhat when the Republicans submit legislation to repeal Obamacare, if the AARP will admit that they were mistaken and now wish to endorse repealing the pernicious law so that new health care legislation can be drafted that actually fixes our health care insurance problems. Only then can they honestly claim that they are once again looking out for the best interests of their members.