AARP - Insurance fraud?

You may have heard about the squabble in Congress over Humana, who offers Medicare Advantage policies to seniors, sending out letters to its enrollees warning of the negative impact of current health reform bills. Congress voted to gag Humana on a technicality that providers of Medicare Advantage cannot advise seniors on policies.

However, AARP, which is very vocal in support of current health care reform bills, and who has done a massive campaign to get seniors to support it, was not included in the gag.

I can understand the Congress not gagging AARP -- hypocritical to the extreme, but expected. But what is AARP's motivation in all of this. Does it really think any of these bills are going to help seniors, when they all call for various cuts in Medicare?

The American Spectator perhaps exposes AARP's motivation -- it can make more money selling traditional Medicare gap policies than it does on Medicare Advantage.

"In 2008, AARP generated $652.7 million in revenue by selling products like Medigap supplemental Medicare insurance, accounting for over 60 percent of the group's revenue, according to an analysis of its financial statements cited in the report released by the House Republican Conference.

If the House Democrats health care bill becomes law, the report argues, it would be a boon to AARP, because while Medicare Advantage plans will be required to pay out 85 percent of the money collected in premiums to claims made by policy holders, the requirement would only be 65 percent for the kind of Medigap policies sold by AARP."

Would making 35% profit compared to 15% profit be enough motivation for AARP to sell out seniors? And isn't it terribly hypocritical for Mr. Obama and the Congress to demonize insurance companies for caring more about profits than about their enrollees' health care?

Glenn Beck has called for 56 members of Congress to refound America by coming clean on the corruption in their own parties. So far, he has 5 on board.

Maybe he should also call for employees of large businesses to come clean on corruption within their own businesses. The refounders are guaranteed anonymity, and the same could be done with the employees. There are laws to protect whistle-blowers, but I think Beck's way might be more successful.

And labor unions as well.