Health Insurance “Broker” Earns $670,000,000 In 2010 – Will ObamaCare Approve?

AARP’s income from United HealthCare skyrocketed from 2007 to 2009, even as the recession was hitting, leaping from $284 million to $427 million during that time, a 50 percent jump. In 2010, those revenues soared even higher — to $670 million.

AARP makes the majority of its revenues from United’s supplemental insurance policies to seniors, including what is known as Medigap, which covers things for which Medicare does not pay. One of AARP’s many ads tells seniors that the insurance can help them protect themselves from some of what Medicare doesn’t pay.

Save up to thousands of dollars in potential out-of-pocket expenses with an AARP Medicare Supplement Insurance Plan,” the ad says.

But AARPs support for the Obama administrations new health care law, which calls for $500 billion in cuts to Medicare, critics say, makes it all the more likely people would need supplemental insurance, something AARP stands ready to provide. That move alone, as seniors began to go to Medigap insurance, increases AARP’s revenue over a 10-year period by $1 billion.

Editor’s Note: With ObamaCare and the minimum loss ratio requirement (MLR) how are association sponsored health plans affected like the Texas Association of Counties, Texas Municipal League and others who sponsor and market group health plans in Texas? After all, aren’t these entities acting as a broker? Will their compensation be included in the MLR calculation? Or is there a loophole to be seized?