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Martha Burk

Martha Burk

Posted: July 16, 2009 12:24 PM

AARP's Bait and Switch on Health Care


The Senate health committee has approved its version of a health care bill, largely tracking the House version requiring Americans to get health insurance, with some subsidies to the poor to help them afford coverage.

The Senate finance committee, where the going is likely to get a lot rougher, has yet to act. They have to figure out how to pay the tab and still garner at least a couple of Republican votes.

The health committee bill would establish a number of stringent federal health insurance rules to replace the hodge-podge of state regulations. Insurers couldn't deny coverage to people because of their claims experience or sex. Coverage couldn't be denied because of pre-existing conditions either.

And what about age? Here comes the rub -- there's something called "age rating" that has sparked all-out warfare between groups that advocate for older Americans. We're not talking about those old enough for Medicare -- they're likely to remain largely untouched by whatever is approved.

It's the "young old" -- those between 50 and 65 -- who are going to get zapped big time if age rating goes into effect. Essentially it means older folks will pay some multiple of the premiums charged to younger people for the same coverage, just because of their age. Since everybody knows older people are more likely to have pre-existing conditions, it's a back door way to replace exorbitant premiums for prexisting conditions with exorbitant premiums for being older.

But it still ain 't fair. A healthy 55 year old who works out and watches what she eats could be asked to pay double what a 30 year old 350 pound person with diabetes and arthritis would get hit for.

The Leadership Council of Aging Organizations (LCAO), a coalition of 60 national not-for-profit organizations concerned with the well-being of people over age 50, has sent a letter to the Senate finance committee arguing that age rating should be ditched altogether. They point out that for most people of modest means who wouldn't qualify for subsidies, the age-rating schemes could push premium costs to as much as 25% of pre-tax income.

The letter was signed by about half of LCAO's member groups -- not including the 900 pound gorilla AARP. Seems AARP wants to allow this blatantly age discriminatory policy to go forward. True, they would limit it to maybe having 50-somethings pay no more than twice the premium of younger people for the same coverage.

Sounds like they're saying a little bit of age discrimination is ok, as long as it doesn't go too far.

The Older Women's League fought hard to get enough sign-ons to send the letter. That's because the plans would particularly affect older single women, already lower on the income scale and less likely to have employer coverage. They rightly pointed out that if gender rating was on the table, every women's group would be raising holy hell.

So where are the rest of the advocates for those over 50? AARP already rakes in megabucks from its supplemental insurance business - you figure it out.

Profits over people - it's the American way.

 
 
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11:30 AM on 07/17/2009
Blatant age discrimination by AARP. Reminds me that I have been correct in trashing their membership requests. I am not, and will not become a member of this gigantic lobbying group!
08:00 PM on 07/16/2009
I am a member of AARP, but only because their car insurance was half or less than the price charged by the big TV advertisers that tell you how much you can save. I'll tell you, if I could save as much as they claim on my present insurance I would be getting a check from them every month. Back to the AARP. It is true that they represent the 55+ segment of the population, but only the well off 55+ segment. So, I say to AARP, you suck.
06:48 PM on 07/16/2009
All this talk about "insurance" misses the point. No matter the details of the proposed health care legislation, every plan so far is headed down the wrong path. Until we stop depending on insurance companies for our health care financing, we are not going have an system that is just, equitable, available, accessible, and provides people with the care they actually need. (We'll just continue to waste billions on administration trying to think up new ways of avoiding actually paying for care, discriminating against one group or another, and on and on.)

It is sad. Fifteen years down the road, and we are looking at another potential failure of polictical nerve. (Clinton health care reform all over again.)

The only real reform that would cover everyone and reduce costs would be a single payer financing, and the pols, both Democratic and Republican, are so in thrall to the insurance companies that they won't even consider it, despite its popularity with the people. Sad, sad, sad that we are so far behind the rest of the world. It's downright immoral.
05:58 PM on 07/16/2009
Thanks to Martha Burk for the terrific post on AARP's behavior when it comes to advocating for themselves. They consistently advocate for their own business interests rather than the members they are supposed to be working for as a "non-profit "advocacy group. Age rating is the absolute wrong direction to go in health care and will not only work against the success and efficiency of a national health care program but Americans of all ages as well. The Older Women's League is correct in working hard to get this issue out in the open. Rating for age or gender is antithetical to real progress in health care and should not be included in any health reform legislation.
10:27 PM on 07/16/2009
Thanks for recognizing the role that OWL has played for over 25 years in fighting to make things better for midlife and older women. Many of the OWL members are -- and always have been -- working to make sure that things are better for their daughters and grand-daughters. Usually this means they are better for most other folks, too! Age-grading is not the way to go. Social insurance means just that -- we are all in it together, all generations sharing risks and benefits. Social security and Medicare benefit all generations -- but we do need to expand Medicare to All!
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babyboomerorig
Finally, it's spring!
05:34 PM on 07/16/2009
AARP has changed it's colors in just 15 years. Used to be a group that gave discounts at hotels, car rentals, etc, then about 12 years ago they offered me car insurance....for less than my coverage they wanted to charge about $50 more a month.

When all the advertising started, my husband asked me to call to check into it and I said NO. It started being fraudulant 12 years go and apparantly has gone down hill ever since.
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04:55 PM on 07/16/2009
I quit AARP when they supported the pharm bill and the giveaway to the insurance cos. I was healthy enough (luckily) to not get ill from 60-65, had no health care coverage. Went to a county clinic where I was diagnosed with high blood pressure at 63; after Medicare kicked in at 65 it was all about Lipitor.

I can't really complain too much about Medicare, except like many women my age, I have no savings or extra income and can't even find a PT job at 68, therefore, I don't buy supplemental coverage which would take about half my SS check. Over 1/3 of SS recipients rely exclusively on SS--I'm one of them. I live with my 50 yr old son and he has NO medical coverage--can't afford it.

BTW, AARP solicits you right before your 50th birthday, not your 55th. And it IS all about insurance, insurance, insurance and the assumption that older people have decent jobs, retirement, investments, etc.
04:38 PM on 07/16/2009
The Older Women's League makes a great point comparing this type of age-discrimination in the new health care bill to gender discrimination. The ENTIRE point of a comprehensive health care system is that all people have equal, affordable access to quality health care. No matter your age, gender, income level, or ethnicity. You pool the risks of all these different demographics and spread the risks out over the entire system.

There is also an assumption that all elderly make more $$ than the young. This is incorrect. Sometimes our aging population needs the most help with affordable health care and penalizing for something they can't help (and that will happen to all of us) is why we need health care reform in the first place.
04:28 PM on 07/16/2009
Martha Burk has hit the nail on the head. Why doesn't AARP advocate for its membership: people 55 and over? Because they are nothing more than an insurance company disguised as a public policy organization. Has anyone ever visited their swank, block-long headquarters in Washington, DC? Built from the take on their supplemental life/health policies, royalty doesn't live as high on the hog.
Bravo to the Older Women's League for taking on this Goliath and exposing their conflict of interest!
04:23 PM on 07/16/2009
Martha has really hit the nail on the head! Why isn't AARP advocating for its constituency: people 55 and older?! Because AARP is nothing more than an insurance company with a public policy disguise. Has anybody ever visited their swank, block-long headquarters in DC? Built from the take off supplemental insurance policies, royalty doesn't live as high on the hog. Why would they cut into their profits by pushing for equal health coverage costs for everybody? Talk about your conflicts of interest!
04:00 PM on 07/16/2009
The rates absolutely must be age-rated. If they are not age-rated the membership will skew substantially to the older ages, thus driving up the overall rates. Actuarial studies show that the cost to insure a 50-65 year-old is 5 to 6 times the cost to insure someone in their 20s. If they are asked to pay the same rate, why would a 20 year-old sign up for the coverage? They'd gladly pay the penalty to be uninsured than the exorbitant cost to be insured. It would be much better to narrow the range, ie., 2x or 3x rates for the older population, than to not age-rate and end up with a skewed group.

I also agree with the comment that if we don't age rate health insurance, then we shouldn't age rate car insurance. Let's see what Martha Burk thinks of that idea!
04:09 PM on 07/16/2009
You're missing the point. If your job is to look out for the best interests of Americans 50+, and you tell Congress it's ok to charge them 2-5 times as much, then you're not doing your job. AARP is taking people's membership $ to represent their best interests, and then not doing it's job.
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Nutcase
From Nashville, Tennistan.
03:54 PM on 07/16/2009
AARP sells health insurance. They are essentially a part of the health insurance industry. They represent the companies, not the clients.

Am I wrong? Wasn't the original idea behind insurance that the financial risk would be shared? With everyone paying the same, they are assured that the burden would be affordable for everyone. Dividing everyone up to try to come close to paying what they are expected to cost obviates the very raison d'etre for insurance in the first place. The ultimate result of accurately predicting everyone's risk would be charging everyone the amount they actually used, plus the insurance company's take, of course.
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TexasDem0
USMC Vietnam vet,Veteran for Peace
03:50 PM on 07/16/2009
The fundamental principle of insurance is risk sharing. Keeping the system as simple a possible makes it more efficient and more cost effective. Look at it this way, when the cost is averaged out, you may pay a little more when you are younger, but when you retire on a fixed income (or watch as your corporate employer sends your job overseas), you will not be hit with higher premiums which you may not be able to afford.
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03:28 PM on 07/16/2009
Old people see the doctor more and have more health problems than young people. Why should young people (that often have lower incomes than older people) pay more for insurance that they don't use to subsidize older people?

For those clamoring that everyone should be charged the same rate should this also apply to car insurance? Young people pay much more for the same coverage compared to older people and boys pay more than girls. Should we jack up everybodies rates to that of teen boys?
06:14 PM on 07/16/2009
That's right. Everyone for him/herself. Why should all those "high income" oldies pay taxes to support schools and colleges that are attended mainly by young people? Let 'em stay ignorant.

Why should we fund research into congenital diseases. We've already had our children.

Why should we fund recreational facilities? We have so many health problems, we can't use them anyhow.

Sounds like someone missed kindergarten the day they learned about sharing.

Buddy, how about joining the rest of the community. We're all in this together.
06:41 PM on 07/16/2009
That's right. Everyone for him/herself. Why should all those "high income" oldies pay taxes to support schools and colleges that are attended mainly by young people? Let 'em stay ignorant. Why should we fund research into congenital diseases. We've already had our children.
Why should we fund recreational facilities? We have so many health problems, we can't use them anyhow.

Now that I think about it, when RightWingMarine is an oldie, if I'm still around I'll be subsidizing his VA health care (just like I am paying for his armed forces health care now). Why should I do that?

Oh! I remember. It's because marines and veterans need health care like the rest of us. Just like educating children, etc., we do it because it's the right thing to do and it makes our country a better place for all of us.

Sounds like someone missed kindergarten the day they learned about "sharing".

Buddy, how about joining the rest of the community. We're all in this together.
08:42 PM on 07/16/2009
I don't think that there'll be any military service member knocking you down in a big bear hug for your or my contribution to VA benefits. I've had enough enlisted friends using VA benefits and one friend doing his medical internship between the Dallas VA and County hospital tell me stories to know that it ain't paradise.
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Phoebe917
old hermit who lives in the woods
03:16 PM on 07/16/2009
i just cancelled my membership. seriously.
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TheIndependenceParty
Cranky yankee and a rehabilitated ex-Republican
02:22 PM on 07/17/2009
Same here! AARP was wrong on the Medicare Drug coverage bill, ... inc;luding the donut hole fiasco, and they are getting it wrong agai. I hope they don't mind living without the entire generation of Boomers they are about to stiff!
03:09 PM on 07/16/2009
I haven't seen the senate bill but it was my hope that there would be a national exchange with set rates for single, family, etc. with no regard to age. This is the way large group insurance works and it seems to me that with a large risk pool, it should be this way. Private insurance companies would be a part of that exchange. That's the way the Federal Health Benefits are set up and we deserve the same.

If this mess ends up being age rated, and there's a mandate, it will be the most profitable windfall the insurance companies have ever had - sure hope their campaign contributions are enough to make congress feel good about trashing the American people.