AARP on Hot Seat Again over Healthcare Reform

A Washington Post article examines AARP’s strong endorsement of healthcare reform. According to the Post the AARP collected more than $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. It does not directly sell insurance policies but lends its name to plans in exchange for a tax-exempt cut of the premiums.

Why is this pertinent?

Democratic proposals to slash reimbursements for Medicare Advantage are widely expected to drive up demand for private Medigap policies like the ones offered by AARP, which provide supplemental coverage for standard Medicare plans available to the elderly.

Republicans sent a letter to AARP on Monday complaining that the group was putting its “political self-interests” ahead of seniors and point to AARP’s thriving business in marketing branded Medigap policies and the potential benefits that could come its way from many of the reform proposals.

What do you think? Is AARP still relevant today? Did their attempt to re-invent themselves for boomers work or backfire?