Tuesday, July 26, 2011

The Non-Profit AARP is Making a Huge Profit

I never was really clear on how non-profits stayed in business. I never bothered to do the research. I just wondered, is it through donations? Government largesse? Or something sinister and malevolent? I now have my answer for AARP. Even though I've been receiving their mailings for years, I've never become a member. Not because I'm not old enough (I am), but because they're nothing more than another pressure and lobbying group, in this case for the elderly - and not quite as elderly as they think I am yet. The fact that they reside in Obama's back pocket, pimping for Obamacare, and then hypocritically getting a waiver to avoid participating in it, caused me to start sending back their self-addressed stamped envelope. Not that one 44 cent stamp will set them back very much when they're making millions secretly selling their members' information.
Susan Salisbury/ Cox Newspapers

West Palm Beach, Fla. — Most people think of AARP, the senior citizen advocacy group, as a way to get discounts on everything from dining and entertainment to insurance.

What is not well-known is that the nonprofit formerly called the American Association of Retired Persons makes more than $650 million a year in royalties for delivering its 40 million members to businesses, according to a congressional report issued in March.

In almost every case, the agreements are secret.

But a May bankruptcy of a retail hearing aid company based in West Palm Beach opened the door to just how lucrative these deals are.

According to documents obtained by the Palm Beach Post, in 2008 Hear-USA agreed to pay $7.6 million a year to become the sole provider of hearing aids to AARP's members. After further negotiations, that provision was eliminated and replaced with a requirement that it pay a $55 royalty fee on each hearing aid sold. That has amounted to more than $660,000.

In addition, the agreement required HearUSA to spend $4.4 million a year promoting the program, donate 1,000 hearing aids a year to disadvantaged people and donate $250,000 to AARP's education fund.

Fewer than three months ago, Stephen Hansbrough, then HearUSA chairman and chief executive officer, resigned, and the company filed for Chapter 11 bankruptcy reorganization. HearUSA is scheduled to be auctioned Friday.

Royalty payments with, primarily, insurance companies comprise 46 percent of AARP's income, according to a March report, "Behind the Veil: The AARP America Doesn't Know," issued by U.S. Reps Wally Herger, R-Calif., and Dave Reichert, R-Wash.

HearUSA officials would not talk about the AARP agreement.

AARP spokeswoman Elly Spinweber declined a request for an interview with AARP officials about the agreement, citing HearUSA's "ongoing legal proceedings."

But wait! There's more! Yes, there's always more. This "non-profit", in reality makes a huge annual profit anyway. They also sell insurance. People complain about how sleazy insurance companies are, but they can't compare to the sleaziness of AARP.
The AARP made over a half billion in profits last year, selling ‘low cost’ insurance and other goodies to seniors. But that’s nothing.”

Martin went on to explain how Obamacare, which the AARP actively advocated for, damages the AARP’s biggest competitor, Medicare Advantage. He adds that the AARP is likely to make millions, if not billions, more dollars in the coming years because it can sell many more Medigap plans without competition.

“Now the cash register will ring even louder as these money-hungry merchants fleece the elderly,” Martin said. “AARP was the single most powerful organization supporting ObamaCare, yet now they want out of the relationship, so that they can make millions selling Medi-gap insurance to the very seniors they betrayed. If there is a more clear example of corruption and hypocrisy, I’ve yet to see it in my over seven decades on the planet. That’s why we call them the Association Against Retired Persons.”
Especially when it comes to being an Obamapal, it ain't what ya know, it's who ya know, and how willing you are to sell out the people who place their trust in you. Thank you, but I will support my sleazy insurance companies over these vile Obama-ite scum any day.



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