Nov ‘11
10
If It’s AARP, Sign Me Up
Health policy researchers have long agreed that Medicare beneficiaries need to be more involved in making both health care and health insurance decisions. The 1965 Medicare benefit and cost-sharing design has driven up costs and utilization. The availability of Medicare Supplements for a monthly premium makes it possible for beneficiaries to cover a good share of the co-pays included in Part B. When United Health Group landed the contract to be the exclusive supplemental plan endorsed by AARP, it became much more difficult to ever change the supplemental structure. Because of the combined policy power of AARP and UHG.
The current TV marketing of United supplemental ends with three gender/ethnic elders saying, “When I heard these Medicare supplementals were endorsed by AARP, I said “Sign Me Up!” The new health reform law requires major changes in health insurance rules which should lead to a much more competitive market and greater consumer value. AARP could make sure this happens were it to fore go the extra millions it makes from granting exclusivity privileges to United. Instead, AARP should set competitive, risk-assuming rules for any plan which wants the AARP supplemental endorsement. And let competition work for all of us, not just for AARP.
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