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AARP says it's cool; what about its Part D plans?

November 13, 2007

And I quote:  "AARP is cooler than you think."  So says the AARP’s blog.  And hey, only one of the actors listed as appearing in its latest PSA campaign (no, not that kind of PSA, the other kind of PSA) is eligible for membership.  The campaign is said to "highlight[] the need for affordable, quality health care and financial security for all Americans." 

Well, that’s great, but I take all things AARP with a grain of salt, and have to wonder how far it goes in promoting the financial interests of the organization, rather than its membership or its newly-announced target audience: all Americans (and you thought 50 was too young for AARP membership!). 

My current cynicism about AARP can mostly be traced to the Medicare Part D experience — when the association did not trumpet the fact that it was a Medicare Part D prescription drug plan sponsor wannabe while it was promoting the legislation that prohibited central purchasing (which would have lowered prescription drug prices for all Medicare D members).

Now that it scooped a bunch of that business, AARP’s cheaper plan is headed for a 65% premium increase (subscribers to a more expensive plan are looking at a mere 16% bump).  See today’s Wall Street Journal for more info (registration or subscription may be required) — the chart reproduced in the margin is from the WSJ.  The article notes:

Most of the private insurers that provide the drug benefit are raising premiums for 2008 — with the average premium from the top three plans set to rise 27% from 2007 levels, according to a new analysis of data from the federal government and private insurers. Many plans will require beneficiaries to shoulder a larger share of the costs of drugs that are covered. And many people will see significant cutbacks on coverage of their medications during the "doughnut hole" gap in coverage.

No big surprise here, since many plans started out with somewhat artificially lowered premiums in order to gain a foothold in a new insurance market.

Check out further info on Medicare D plans at www.medicare.gov.   Here’s hoping the folks affected by these premium hikes can navigate the data.

But, hey, AARP’s cool.  They even embedded a YouTube version of a PSA in their blog post.  How cool is that?

— David Harlow

Filed Under: CMS, Consumer-Directed Health, Health care policy, Health Law, Medicare, Prescription Drugs, Universal Health Care

you might also like:

  1. Other observers share the HealthBlawger's concern about AARP being in the Medicare Part D biz

  2. Future Outlook: Medicare Advantage Plans & Risk Adjustment

  3. GAO says Medicare Advantage plans save seniors money … or cost seniors (and taxpayers) too much money … or something …

« When do you pull the plug on a hospital?
Final Medicare 2008 OPPS regulations released by CMS for publication in late November »

Comments

  1. DBJ says

    November 13, 2007 at 11:11 pm

    Well – I don’t know if it is cool or not, but AARP is also doing this site in response to Congressional inaction on Medicare: http://www.thisissoridiculous.com

    At least they’re trying – maybe it’s cool maybe it’s lame, but they’re trying to do something and that’s more than you can say about a lot of organizations.

  2. Gary A. Fox, CPA, CMA says

    December 20, 2007 at 4:50 pm

    The really sad thing about the AARP branded Prescription Drug Plans is that seniors can purchase Medicare Advantage Plans…WITH prescription drug coverage…for LESS than the cost of AARP’s Prescription Drug Only Plans. But, you don’t see AARP telling its members about this! AARP is nothing more than a HUGE organization gettting MAJOR commission kickbacks from all the insurance products it constantly pushes on its
    brain washed members.AARP should not even be allowed in the insurance business. Many, if not most of its reps aren’t even licensed as insurance reps…yet they constantly give advice to seniors. I, and a lot of other people, see red every time we hear the letters AARP.

Trackbacks

  1. Trusted.MD Network says:
    December 20, 2007 at 1:50 pm

    Other observers share the HealthBlawger’s concern about AARP being in the Medicare Part D biz

    Today’s Kaiser Daily Health Policy Report says: “Some advocates have expressed concern over the commercial success of AARP-branded Medicare prescription drug plans.” See the recent HealthBlawg post touching on the AARP Medicare Part D question as well. —

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