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AARP Raises Costs for Employees' Insurance Plans

quote:
Published November 05, 2010

| Associated Press

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.

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.

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."



Bunch of hypocrites.
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AARP was praising odummers health care plan saying it would lower cost. I wonder what happened. We now know health care cost is going through the roof and we will be paying taxes on our heath care benefits. AARP is nothing but a loud voice for the democratic party. I won’t have anything to do with them anymore.

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