: Democrats Hit AARP Ties to Insurers, GOP

[Guest guest]

> 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

>

(<http://us.rd./DailyNews/manual/*http://search.news./sear

ch/news?p=%22President%20Bush%22 & c= & n=20 & yn=c & c=news & cs=nw>news

> -

>

<http://us.rd./DailyNews/manual/*http://search./search/sea

rch?p=George+W.+Bush>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.

>

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

are_aarp_2

>