The American Association of Retired Persons (AARP) cut a deal with President Obama. Unfortunately, this deal will hurt the people they are supposedly lobbying for – retired people. The AARP, which started out as an organization to help retired people by providing information as actually morphed into a private insurance carrier as well. The AARP (through a subsidary) provide Medi-Gap insurance to the elderly. Medi-gap is a high-cost, private insurance policy that will pick up costs where Medicare leaves off. The AARP was having a field day providing this insurance.

Enter President Bush-43. President Bush passed the Medicare Advantage Program. This program offered a subsidized, lower cost program. Many seniors switched from Medi-Gap to the new Medicare Advantage Program. The Seniors saved money and still received good coverage.

So how did President Obama win over the AARP support for his health care bill? President Obama has eliminated subsidies for the Medicare Advantage Program. Seniors will now have to pay more for coverage under Medi-Gap and guess who will make more money – AARP.

There is always a payoff, isn’t there.