Two of the biggest endorsements for President Obama’s health reforms come from American Medical Association (AMA) and the Association of Retired Persons (AARP).
Should the fact that AMA represents less than 19% of practicing physicians deter from their legitimacy? Despite initial opposition to President Obama’s health reforms, the AMA now positions as a vocal ally for Washington’s reforms. Dick Morris explains the deal the White House cut with AMA:
The American Medical Association (AMA) was facing a 21 percent cut in physicians’ reimbursements under the current law. Obama promised to kill the cut if they backed his bill. The cuts are the fruit of a law requiring annual 5-6 percent reductions in doctor reimbursements for treating Medicare patients. Bravely, each year Congress has rolled the cuts over, suspending them but not repealing them. So each year, the accumulated cuts threaten doctors. By now, they have risen to 21 percent. With this blackmail leverage, Obama compelled the AMA to support his bill…or else!
Another vocal ally for Washington’s reforms is the American Association of Retired Persons (AARP). Seen by many as a genuine advocate for older Americans, most forget that AARP is also an insurance comp
any. Dick Morris explains AARP’s posture:
The AARP got a financial windfall in return for its support of the healthcare bill. Over the past decade, the AARP has morphed from an advocacy group to an insurance company (through its subsidiary company). It is one of the main suppliers of Medi-gap insurance, a high-cost, privately purchased coverage that picks up where Medicare leaves off. But President Bush-43 passed the Medicare Advantage program, which offered a subsidized, lower-cost alternative to Medi-gap. Under Medicare Advantage, the elderly get all the extra coverage they need plus coordinated, well-managed care, usually by the same physician. So more than 10 million seniors went with Medicare Advantage, cutting into AARP Medi-gap revenues. Presto! Obama solved their problem. He eliminates subsidies for Medicare Advantage. The elderly will have to pay more for coverage under Medigap, but the AARP — which supposedly represents them — will make more money.
Morris says, “These endorsements are not freely given, but bought and paid for by an administration that is intent on passing its program at any cost.” Click here to read full article.
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