November 23, 2009  Washington, D.C.  The AARP endorsement of the Reid/Pelosi health care reform package has now become the Poster Grandparent for the Democrats proving that health care reform will not harm seniors.  After all, the leading advocate for older Americans is for the reforms, it must be good for seniors.

Key Democrat Senators hit the Sunday Talk Show circuit to crow about the AARP endorsement, and beat the drum hard to claim the AARP endorsement was solid proof that the Republicans were lying when they say the Democratic plan cuts Medicare spending.

But the truth is, AARP no longer advocates for seniors, except when it is convenient to claim they do.  And the truth is the Reid/Pelosi bill CUTS Medicare spending by nearly $500 billion.  How can it not cut benefits to seniors?

But the real question is this:  Why would AARP risk making such a public stand when all public opinion polls show seniors are solidly against the Reid/Pelosi health care package?

AARP has come under fire recently for its alleged conflicts of interest in supporting the Reid/Pelosi Health Reform Bill because it will essentially eliminate some competitors in the health insurance marketplace where AARP generates a substantial portion of its annual revenues.

AARP royalties from auto, health and life insurers, credit cards, and other branded products recorded a huge jump from 2007 to 2008, dramatically increasing from $500 million to $652 million. AARP’s annual financial report reveals that 63% of that annual revenue — about $400 million — is generated from AARP MediGap insurance policies that are underwritten by UnitedHealth Group.

AARP changed its name several years ago from the "American Association of Retired Person" to "AARP" in an attempt to re-brand itself to take on an identity more attractive to the younger "Boomer" population.   Now, AARP seems to be struggling through another identity crisis on whether it is an advocacy group, or an insurance company.

Either way, seniors who thought AARP was an advocate for them started leaving AARP in droves early this year when reports circulated that AARP had endorsed the Obama Health Reform agenda.  More than 60,000 seniors terminated their membership in AARP, and the announcement AARP has officially endorsed the Reid/Pelosi Health Reform plan will surely accelerate that membership loss.