Democrats Hit AARP Ties to Insurers, GOP

[Guest guest]

http://story.news./news?tmpl=story & u=/ap/20031120/ap_on_go_co/medicare_\

aarp_2

 

Democrats Hit AARP Ties to Insurers, GOP

Thu Nov 20, 2:47 AM ET

 

By MARK SHERMAN, Associated Press Writer

WASHINGTON - Democrats stung by AARP's endorsement of a GOP-backed Medicare

prescription drug bill are lashing out at their longtime ally, claiming the

seniors' group is too closely tied to the insurance industry, and more to the

point, Republicans.

 

 

 

AARP said this week it would throw the support of its 35 million members behind

what it called " not a perfect bill, but a good first step " in giving seniors

insurance for their prescription drugs. It is running a massive television ad

campaign to that effect in dozens of cities.

 

Familiar with AARP's clout, Democrats had been trying to forestall an

endorsement, which would give a boost to President Bush (news - web sites) and

Republican lawmakers. When they failed Monday, they reacted with anger that

showed no signs of abating two days later.

 

At a rally Wednesday with seniors to oppose the legislation, House Democratic

leader Nancy Pelosi noted that AARP chief executive William Novelli wrote the

preface to a recent book on health care by former House Speaker Newt Gingrich,

R-Ga.

 

" AARP's leadership has been in the pocket not only of the Republican leadership

in the House, but they helped write Newt Gingrich's book on how to destroy

Medicare, " Pelosi said.

 

Pelosi and Senate Democratic leader Tom Daschle of South Dakota expressed their

criticism in a letter to Novelli. They asked him " to dispel any perception of a

possible conflict of interest " over AARP's relationship with insurers, who would

be allowed to compete for Medicare business under the pending legislation, and

other companies that market to AARP members health and life insurance policies

and mail-order pharmacy service.

 

Royalties from such arrangements — including deals with United HealthCare

Insurance Co., Metropolitan Life Insurance Co. and Advance PCS pharmacy benefit

manager — accounted for more than a third of AARP's $636 million in revenues

last year, according AARP's 2002 annual report.

 

Spokesman Steve Hahn denied any conflict, noting that the mail-order pharmacy

business probably would suffer if many AARP members were to opt instead for a

drug benefit under Medicare.

 

Eighty-five Democrats over the age of 50 told Novelli in another letter that

those who were AARP members were quitting and those who didn't belong would

never join.

 

Outside of AARP headquarters on Wednesday, a couple dozen people gathered to cut

their membership cards in protest of the organization's endorsement of the

Medicare plan.

 

" I'm here to let AARP know that we want them to reconsider, to change some of

the things that they've settled for, " said Gloria Chestnut, 62, who rode with

other senior citizens on a bus from New York City.

 

Six of the nine Democratic presidential candidates this week criticized AARP for

supporting the bill, saying it was a giveaway to private insurers that will

undermine the federal health program for the elderly.

 

Some Republicans chuckled at the reversal of roles, recalling that Democrats

only recently held AARP in the highest esteem. " Democrats have been down the

street burning their AARP cards this afternoon, " Rep. Mark Foley, R-Fla., said.

" A month ago, I was told by my colleagues on the other side that AARP was the

gold standard of senior lobbying organizations. "

 

GOP leaders tentatively set a vote for Friday on the bill, the product of months

of negotiations among House and Senate Republicans, the Bush administration and

Democratic Sens. John Breaux of Louisiana and Max Baucus of Montana.

 

But Pelosi said Democratic opposition to the bill was " a party position, "

signaling an aggressive effort to unite the rank and file, scuttle the bill and

claim credit with voters.

 

Told by congressional budget experts that the bill would cost less than the $400

billion Republicans have allocated, officials reviewed steps to make the drug

plan more attractive and said the leading option would reduce the projected

deductible from $275 to $250.

 

The legislation would make the most far-reaching changes in Medicare since the

federal health care insurance program for the elderly and disabled was created

in 1965. It would add a prescription drug benefit, with federal subsidies for

lower-income beneficiaries. In addition, it would encourage private companies to

create new preferred provider organizations, in hopes that seniors would select

them over the traditional health care system they have known.

 

 

 

Supporters argue the private plans will deliver better health care more cheaply,

curtailing the cost of Medicare over time. Critics worry that the legislation

will begin to undermine the foundation of Medicare — a standard benefit at a

uniform price.

 

 

 

 

 

NEW WEB MESSAGE BOARDS - JOIN HERE.

Alternative Medicine Message Boards.Info

http://alternative-medicine-message-boards.info

 

 

 

Free Pop-Up Blocker - Get it now