Medicare drug bill
support splits AARPSome local members see
a financial conflict for
the organization
A conflict is brewing among AARP Hawaii members over the organization's support for the Republican-drafted Medicare prescription drug bill before the U.S. Senate.
Hawaii AARP Executive Director Greg Marchildon, who supports the bill, cites "a tremendous amount of misinformation and unfair and ridiculous charges against AARP.
"It's not a perfect bill," he said, but "for the first time in the program's history, there is a $400 billion drug benefit in the statute."
The bill aims to provide limited drug coverage for seniors starting in 2006, including coverage of all catastrophic costs after out-of-pocket costs reach $3,600, with additional aid for low-income seniors. The more controversial provisions would inject market forces to Medicare through tax-free health savings accounts and pilot projects starting in six cities in 2010 in which seniors could choose between Medicare or private health plans.
The bill passed the House Saturday, and a Senate vote was likely today.
Critics of AARP, including the organization's members and key Democrats, say the organization has a conflict of interest because about 60 percent of its revenue is from insurance-related ventures.
Hawaii AARP member Larry Geller said AARP "stands to make millions more under the proposed Medicare law. The drug coverage in this bill is too skimpy to do many people any good."
"Seniors may not be able to get the same medicine they are using now, and many will pay more," he said. "AARP Hawaii should break with the national organization and reject this bad bill."
The issue was expected to crop up at today's meeting of the Kokua Council, a senior citizens advocacy group, at Harris United Methodist Church.
The consumer group Public Citizen suggests AARP has financial incentives to support the bill because it could profit significantly from programs established by the legislation.
Marchildon attributed the opposition to partisanship.
"The Democrats are playing politics, which is unfortunate," Marchildon said.
He said the view that the program is being turned over to for-profit health maintenance organizations is wrong, and "the notion that we ought not to do something about drug costs for the poorest is unconscionable."
He said AARP was instrumental in eliminating one of the major provisions with the original draft, which would have turned Medicare over to private competition in 2006.
Instead, six small demonstration projects will take place in 2010 to allow private plans to compete with traditional Medicare over six years, he said. If they can hold down costs and provide coverage by 2016, the president would make recommendations to Congress for legislation allowing more open competition.
The San Francisco Chronicle contributed to this report.
