Guest Column In The Clarion-Ledger: Is the AARP the American Association for Real Profits?

As Republican lawmakers in Washington try to reduce federal spending, the AARP has offered their input through letters to the editor, television advertisements and an aggressive telephone campaign.

The organization, formerly an advocate for our nation's seniors, has compromised its credibility with older Americans, in exchange for billions in profits and gold-plated executive salaries.

The president of AARP Mississippi recently opined ("AARP against Congress' cuts," June 20 letter by Bruce Brice Sr.), "Congress needs to start making the right decisions about our nation's future priorities, beginning by cutting tax loopholes and special interest tax breaks for companies that make billions of dollars in profits, but pay little or no taxes."

Ironically, one day later, The Wall Street Journal reported that this powerful lobby lost about 300,000 members as a result of its support for the president's health law - commonly referred to as "ObamaCare."

In fact, while this supposed non-profit interest group advocated closing "loopholes" and "special interest tax breaks" for billion-dollar companies, its revenue exceeded $1.4 billion in 2009, primarily from royalties from insurance companies.

An April 2011 report exposed the AARP's massive for-profit insurance sales enterprise and how that conflicts with its legal requirements as a tax-exempt non-profit to "primarily operate to promote the common good and social welfare of a community of people."

The report explains that as a result of "ObamaCare," the White House estimates more than 7 million seniors will lose their current Medicare Advantage plans, resulting in a massive migration of seniors to Medigap plans. AARP is the nation's leading provider of Medigap plans and has a contract in which AARP financially gains for every additional enrollee. It even received a waiver from the Department of Health and Human Services exempting it from oversight when such providers increase payment rates for their supplemental plans.

Shocking is the report's key finding: "ObamaCare," which the AARP strongly endorsed, could result in a windfall for AARP exceeding over $1 billion during the next 10 years.

Continuing its scare tactics, the AARP's television advertising suggests that Congress could balance the budget if they eliminate a cotton institute in Brazil, poetry in zoos, treadmills for shrimp and pickle technology, rather than by reforming Medicare and Social Security.

While I do believe that small spending reductions add up, the total cost of these four projects will hardly touch the projected 2012 federal deficit of $1 trillion. AARP's plan for dealing with out-of-control growth in Medicare? Do nothing.

I support the House Republican proposal: true reforms of mandatory spending programs, like Medicare and Social Security, that strengthen the nation's fiscal health and protect the solvency of our seniors' health and retirement programs.

The fiscal year 2012 House-passed budget keeps Medicare unchanged for those who are 55 and older to avoid disruption in their lives. This same plan would promote the solvency of Social Security, and fulfill our mission of health and retirement security.

Gregg Harper, R-Brandon, serves in Mississippi's Third Congressional District.