AARP Caves

A big puzzle this week was why the AARP endorsed the Medicare bill currently in Congress. Center for American Progress solves part of the mystery:

AARP'S MOTIVATIONS: The American Association of Retired Persons this week endorsed the Medicare bill, raising questions about why the organization would ignore its previous conditions. A look into the organization's business practices, though, offers some perspective. As reported by many news organizations, AARP receives about $100 million annually in health insurance sales – something sure to be enriched with the new bill. In a 2/19/02 Newsday article, critics even suggested that "AARP's substantial profits from the sales of Medigap and other insurance policies, drug company advertising in its magazines and investment schemes conflict with its interests on behalf of seniors." At that time, AARP President William Novelli, who also wrote the laudatory preface to Newt Gingrich's book on health care, "acknowledged complaints from members that AARP had been too timid in the political battles to defend Medicare." Having embraced the bill, the group will use some of that health insurance/drug industry revenue to finance a $7 million ad campaign to support the Medicare legislation.

Yes, even to the detriment of its own membership, AARP succumbs to the big buck. Time for a revolution.