From The Daily Caller:

The Daily Caller has learned that the Department of Health and Human Services (HHS) rate review rules, which it finalized on Thursday, exempt “Medigap” policy providers, like the American Association of Retired Persons (AARP), from oversight when such providers increase payment rates for their supplemental insurance plans.

Insurance providers who aren’t exempt from Obamacare’s rate review rules are required to publicly release and explain some health care payment rate increases.

The AARP is the nation’s biggest seller of Medigap policies, or supplemental healthcare plans that add onto what Medicare won’t cover for seniors. The senior citizens interest group advocated for Obamacare to include an attack on Medigap policies’ biggest competitor, Medicare Advantage.

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Ever since the passage of ObamaCare, I’ve been perplexed by a lingering question: Why did AARP so aggressively lobby for passage of the law? After all, the plan was built on $500 billion in cuts to Medicare. Even in Washington, half a trillion dollars is still a ton of money. Medicare is sacrosanct among America’s senior citizens. It was unfathomable to me that the nation’s largest membership association of seniors would, not just not oppose the cuts, but would actively lobby for them. It didn’t make any sense.

Mostly, I just chalked up AARP’s actions to its general leftist, partisan leanings. Medicare cuts by Republicans are bad, but cuts by Democrats to increase government involvement in health care are okay. Boy, was I wrong.

According to this blockbuster report, released today by the House Ways and Means Committee, AARP’s support of ObamaCare and, specifically, the Medicare cuts was entirely rational and self-serving. The Committee found, after an 18 month investigation, that AARP stands to reap an extra billion dollars in profits from ObamaCare. (Yes, that is billion with a B.) Worse, this extra profit is largely BECAUSE of the Medicare cuts.

AARP’s members may face uncertainty over their future health care because of the cuts, but AARP faces certain windfall profits for itself.

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When the AARP began its full-throated support for the President’s Health Care Scheme many wondered why this venerable organization would support a plan which would  cut hundreds of billions of dollars from Medicare, mostly by putting strict price controls on the very popular Medicare Advantage program.

By putting enormous price controls (cuts) in the Medicare Advantage program, many seniors will be forced to look to the other Medicare supplemental offer, MediGap.   It just so happens that AARP sells MediGap coverage to its members.  The income generated from those sales accounts for 60.3% of AARP’s revenues, ten years ago, this income only accounted for 10% of their budget.

So, in short, the Obama Health Care Scheme puts hundreds of millions of dollars in AARP’s coffers by forcing seniors off of Medicare Advantage and into MediGap programs.  You would think that this was enough of a payback to the AARP for their support.  But Big Government now reveals another little prize that has been awarded to AARP in time for their recent official endorsement of the Senate Bill.

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