So the AARP has decided to make a heavy move into the insurance business. This probably erases their utility as a partner in serious universal reforms, as much of the profit flowing through the insurance industry will be flowing into their coffers and any move that tamped down on industry profits would cut off some of theirs. So that's bad news. And nor will they be a different kind of insurer:
People ages 50 to 64 often find that health insurance is unavailable or unaffordable when they try to buy it on their own. AARP said its underwriting practices would be less stringent than those of many commercial insurers, but it reserved the right to deny coverage to some sick people ages 50 to 64.
To guarantee issuance of a policy to every applicant in that age group is “just not economically feasible,” Ms. Sweeney said.
This, by the way, isn't the first time AARP has done something shady like this. Go here and scroll down to "Drug Beneficiary" for another.
Similarly, I was thinking last night how the number of banks trying to get in on offering HSA accounts likely presents a problem for reformers too, as soon enough, they'll be making quite a bit off management fees and will also have a stake in obstructing change. So that's another powerful interest group opposing reform.
Yeah, today is not one of my optimistic days.
