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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?


To: Peter Dierks who wrote (37795)4/20/2010 12:01:58 AM
From: Peter Dierks1 Recommendation  Respond to of 71588
 
Ways & Means Republicans Seek AARP Docs for Obamacare Oversight Investigation
by Connie Hair

04/19/2010

Rep. Dave Camp (R-Mich), top Republican on the House Ways & Means Committee, and Rep. Wally Herger (R-Calif.), Health Subcommittee ranking Republican -- along with two members of the committee, Reps. Ginny Brown-Waite (R-Fla.) and Dave Reichert (R-Wash.) -- requested documents (.pdf) yesterday from UnitedHealth Group to explore its financial relationship to AARP.

AARP’s marketing of United’s insurance products involves hundreds of millions of taxpayer Medicare dollars annually. Ways & Means has sole House Congressional oversight authority over Medicare Part A and shares oversight of Parts B, C and D with House Energy & Commerce.

United-AARP insurance plans cover more Medicare beneficiaries than any other insurer. In 2008 alone, AARP received $652,701,000 from varying insurance companies with the largest sum -- 63 percent ($411,201,630) -- coming from United.

From the document demand letter:

In particular, United and AARP have jointly refused to provide detailed information specifying how payments for marketing United’s Medicare Advantage and Medigap policies are structured, the amount of money United pays AARP to partner in the MA and Medigap insurance business, and risk-bearing arrangements entered into by both parties.

It is our understanding that United pays AARP a negotiated royalty fee to use the AARP brand name while marketing Medicare Advantage plans. We understand this seven-year financial arrangement ends in 2014 and that AARP does not bear any financial risk for the medical expenses incurred by seniors enrolled in United/AARP Medicare Advantage insurance plans.

In light of the foregoing, we repeat our request for disclosure of the amount of money United has paid, or will pay, AARP to comply with the Medicare Advantage contract in each year over this seven year period. Additionally, please indicate what factors went in to determining this pre-arranged royalty fee.

The entire letter with more specifics on requested documentation is found at the link (.pdf).

AARP heavily supported Obamacare and could monetarily benefit from its insurance royalty deals with United as a result of its passage. Republicans want to find out.

“I urge United to comply with our Congressional investigation so we may conduct the necessary oversight to ensure taxpayers and seniors are being served well,” Camp said. “There are hundreds of millions of dollars at stake and the well being of not only the Medicare program but the nation’s seniors who rely on it for medical care.”

“The special-interest deals that helped grease the passage of the recent health care legislation served as a reminder that we need far more transparency in Washington,” Herger said. “Our goal here is simple -- to take an honest look at the relationship between AARP and the health insurance industry and ensure that AARP is acting as an appropriate advocate for seniors.”

“It is very apparent to me that AARP is more concerned about their bottom line than the well being of their membership,” Brown-Waite said. “I represent more Medicare recipients than any Member of Congress -- these questions need to be asked and it’s my responsibility to ask them.”

“Seniors deserve a straight answer from United and AARP on their financial relationship,” Reichert said. “Is there a financial benefit to AARP as the government takes over health care in America? They owe an answer to seniors: those losing their benefits and those paying more in additional fees and taxes. There’s a lot at stake for America’s seniors and their future health care benefits. I urge United and AARP to be transparent and honest in this inquiry.”

I am positive Republicans will be able to drag much more into the light of day should they retake the majority come November -- and the committee chairmanships along with that majority.

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Connie Hair is a freelance writer, a former speechwriter for Rep. Trent Franks (R-AZ) and a former media and coalitions advisor to the Senate Republican Conference.

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humanevents.com