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  • Side Effects: AARP Employees Face Premium Hikes As Result of New Law

    Health care reform was supposed to “bend the cost curve” in health care and reduce the amount that American families pay in health care premiums.  This was the message the nation received from proponents of the new law, which included organizations such as AARP.

    But now the group, whose membership includes 40 million Americans over the age of 50, is telling its employees a different story.  Ricardo Alonso-Zaldivar, writing for the AP, recently reported that AARP informed its 4,500 employees in an email that, “Health care premiums will increase by 8 percent to 13 percent next year because of the rapidly rising medical costs.”  But medical costs aren’t entirely blame: premiums will jump “partly as a result of the new law.”

    In order to prepare for the new law’s tax on high-cost insurance plans, which kicks in in 2018, AARP employees will see the value of the health plans modified to avoid falling within the taxable bracket.  This will mean a modification in co-pays and deductibles which will put employees on the hook for a larger portion of the cost of their health plans.

    AARP continues to support Obamacare, despite warning that the organization “intends to make similar changes as necessary in the future to avoid the tax.”

    AARP is only one of a string of employees to announce higher premiums as a result of Obamacare, and it surely will not be the last.

    This post was co-authored by Charlie Adair.

    Posted in Obamacare [slideshow_deploy]

    13 Responses to Side Effects: AARP Employees Face Premium Hikes As Result of New Law

    1. Thomas A. Coss, Las says:

      I have two questions for everyone to consider regarding their healthcare coverage: 1) if you get injured, who does your healing for you? and 2) should you become very ill, who's going to do your dying for you?

      The answer to these two questions identify the party who needs to play a central role in your care decisions. Anything that disrupts this parties ability (your ability) to directly influence the treatment, and provider of that treatment, should not be tolerated. (By the way, where treatment is provided matters, don't be fooled in thinking otherwise)

      Most things in medicine are trivial. Colds, most flu's, skinned knees, broken bones, true emergencies in life are, at least in the US, amazingly rare. We're a pretty safe society that cares for it's fellow citizens. Medicine is complicated, and the Government makes that worse. The growth in premiums reflect limitations in choice.

      Thomas A. Coss, RN

    2. MJF, CT says:

      Maybe if AARP actually paid attention to what it was doing rather than being Democrat Liberal stooges, AARP would have seen that this whole Health Care thing was just a total mess. But AARP's attitude is "Liberals are our friends and the Democrats support the working man". Well, as we see here, by supporting Mr. Obama and his regime, you will take it in the end every time.

    3. Todd Coykendall, Alb says:

      I could almost laugh at the AARP shooting themselves (actually their employees) in the collective foot over this except that we're all in the same boat and the bullet holes are letting in the water…

    4. Sandy CT says:

      When I called to cancel my membership after hearing that AARP was shilling for the President I was told by one of their employees "we are not involved in pushing for Health Care Reform". I knew it was a lie then, and now they know it was a lie. How foolish they muyst feel.

    5. Ben C. Ann Arbor, MI says:

      If the youth of today want a glimpse into the future know this:

      October of this year I reached the age of 65. I am mandated by Federal law to subscribe to Medicare – no choice. For me to keep the same level of insurance my annual premiums went up $3485. This is based on the fact that to suppliment Medicare I must subscribe to Medicare part B. This plus the Blue Care Network cost for me to maintain insurance for my family resulted in the additional expense. I continue to be self employed and am required to continue paying the Federal Self Employment tax of 15%. The Federal Government is penalizing me for continuing to be a productive member of society. For this I hold Congress in contempt.

    6. R Holland, Chandler, says:

      I'm a federal retiree, just got my statement from Aetna that shows a 19% increase in monthly premiums. Thank you Obamacare, I say facetiously.

    7. Chuck O'Reilly says:

      AARP has become more public in its support for health care reform. However, there is some facts about AARP that your organization may find of interest.

      Did you know that in 2008 AARP processed $6,300,000,000 ($6.3 billion) worth of health insurance premiums that had been purchased by its members? From that $6.3 billion, AARP then withheld $652,000,000 ($652 million) as commissions which it recognized as "Royalties" in its financials. However, the sale of $6,300,000,000 worth of insurance premiums was what the people at Enron called "an off books transaction".

      How can an organization that is so financially intertwined with the insurance industry be an agent to change the insurance industry? When you consider that over 50% of AARP's annual income is from the sale of insurance premiums, why would they want to change anything?

      Email me at chuckoreilly555@msn.com and I will forward you AARP's 2008 audited financials so that you may verify the above numbers.

      Chuck O'Reilly

      Larkspur, CO 80118-7630


    8. Pingback: Must Know Headlines 11.17.2010 — ExposeTheMedia.com

    9. M. Murray, Riverside says:

      AARP can stuff their invitations to join them and keep their phony membership cards. They have no sence of what is happening to seniors and the economy. They are only pitching their own agenda!

      At 66 (soon to be 67) and still working, I have lost confidence in the AARP to represent seniors and more significantly, after they reversed their postion and supported Obama's health care bill! But, then, no one remembers that small tactic.

      Don't need you AARP! Pander to someone who is not aware of what is happening and looks at the world through rose colored glasses!

    10. Bill Witter, San Ant says:

      Serves them right. AARP lost my support many years ago, but the last straw was their backing of Obamacare.

      I do not know what AARP considers protecting seniors, but they have joined the liberals, and lost my support.

      I am really saddened by the fact that my Medicare Advantage plan now carries the AARP name. I guess I will stay with Secure Horizons/AARP by United Healthcare as long as they do not let AARP dictate how they do business. Besides I like my provider and PCP.

    11. Margaret Slingluff says:

      My husband and I have been members of AARP for several years. When AARP backed the Obamacare, I canceled my insurance with them and told them that as soon as our membership was up we would not join. I also am the leader of a Tea Party group, I have been spreading the word about AARP. They have sold out the seniors, they claim to help.

    12. Mary Conery says:

      AARP should get the message if others, like myself, drop their AARP membership. They are not supporting what the voters demonstrated regarding Obamacare. We don't want it..

    13. Pat from Texas says:

      AARP is just another one of Obama's stooges. Who needs them?

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