Who would have ever thought that the AARP would support any legislation that eliminates $500 billion from what, in the past, has been the group’s most cherished government program–Medicare? Yet, that is exactly what it is doing in endorsing the health care reform bill expected to be voted on by the House of Representatives tomorrow. The fact is that the answer to this apparent contradiction can be found in the usual way–by following the money. It turns out that the specific cuts to Medicare being proposed will actually benefit AARP, if not its members. The proposal would eliminate that part of Medicare called Medicare Advantage, which subsidizes seniors to purchase private insurance plans that cover what Medicare covers plus added expenses that Medicare does not cover. These private Medicare Advantage plans are in direct competition with the kinds of health insurance plans that the AARP sells, called Medigap plans. These are supplemental insurance plans that seniors can buy, not instead of their government provided Medicare plan but in addition to it. Medigap plans pay for what Medicare doesn’t. By supporting the Pelosi health reform bill AARP is supporting the elimination of its number one competitors in the health insurance market and therefore supporting what will likely be a large increase in its revenues. In other words, AARP’s support for the Pelosi health care reform bill is all about fattening its coffers, and therefor the salaries and benefits of the group’s leadership. A hat tip goes out to Congressman David Reichert of Washington who has nailed this one on the head.