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AARP Ups Employee Healthcare Premiums

From an irony-proof Associated Press:

Citing health overhaul, AARP hikes employee costs

By Ricardo Alonso-zaldivar, Associated Press Thu Nov 4, 2010

WASHINGTON – AARP’s endorsement helped secure passage of President Barack Obama’s health care overhaul. Now the seniors’ lobby is telling its employees their insurance costs will rise partly as a result of the law.

Isn’t irony… ironic? Except it really isn’t irony. The AARP knew exactly what they were bargaining for. They just didn’t care how it hurt their employees or their supposed constituency.

In an e-mail to employees, AARP says health care premiums will increase by 8 percent to 13 percent next year because of rapidly rising medical costs.

Would it be wrong to question the timing of this news report?

And AARP adds that it’s changing copayments and deductibles to avoid a 40 percent tax on high-cost health plans that takes effect in 2018 under the law. Aerospace giant Boeing also has cited the tax in asking its workers to pay more. Shifting costs to employees lowers the value of a health care plan and acts like an escape hatch from the tax.

"Most plan co-pays and deductibles have been modified," Jennifer Hodges, AARP’s director of compensation and benefits, wrote employees in an Oct. 25 e-mail. "Plan value changes were necessary not only from a cost management standpoint but also to ensure that AARP’s plans fall below the threshold for high-cost group plans under health care reform."

Again, why didn’t we hear about this before the elections?

Although the tax on so-called "Cadillac" health care plans doesn’t take effect for years, employers are already beginning to assess their potential exposure because it is hefty: at 40 percent of the value above $10,200 for individual coverage and $27,500 for a family plan…

Certner said AARP’s plans are currently under the threshold for the tax. "We intend to stay below those thresholds," he said. "It’s not in anybody’s interest to move above those thresholds, not the employees’ nor the employer’s."

AARP officials say the organization’s public policy recommendations are made independently of other considerations, including its range of business ventures, from travel, to insurance, to publishing

"The impact on AARP employees is not a factor at all in our policy making, which is directed at the impact on our membership and on all older Americans," said Certner

In other words, they refuse to consider the real world implications when they push their radical left agenda. Even though they knew it would hurt their employees and constituents.

By the way, lest we forget, AARP makes a lot of money off of their Medicare Advantage Plans. Plans they will soon no longer be able to afford, unless they are somehow different from every other company in the US.

Hopefully Obama-Care will be the AARP’s own personal ‘death panel.’

About 4,500 people are covered by AARP’s plans, including employees, dependents and retirees…

AARP warned its employees that more cost-shifting could be in store. "AARP intends to make similar changes, as necessary, in the future to avoid the (health plan) tax," said Hodges’ e-mail

Yes, as the poet sang, "we’ve only just begun…"

This article was posted by Steve on Friday, November 5th, 2010. Comments are currently closed.

One Response to “AARP Ups Employee Healthcare Premiums”

  1. Liberals Demise says:

    This is your personal ‘Thank You’ from the ones you crawled into bed with.
    Now turn off the light and suffer. You deserve all that’s coming to you……pigs!

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