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November 19, 2003
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Why are the AARP Board and CEO Providing a Virtual Soft Money Ad Campaign for The Republicans?

A BUZZFLASH READER CONTRIBUTION

BuzzFlash Preface: Why are William Novelli, the CEO of AARP, and the AARP board of directors spending $7 million to politically help the Republicans? Because that is all that their ads in support of the GOP "First Step in Dismantling Medicare" bill will do. Either the ads will make the GOP appear to be the saviors of seniors if the Democrats cravenly support the bill, or they will make the Democrats look like the enemies of seniors if they wisely oppose this bill that aims to undermine Medicare in the long-term.

It's no coincidence that one of the rising right wing nut stars, Senator Lindsay Graham, on Tuesday announced a senate bill to start privatizing Social Security. [LINK]

The Medicare bill is just the first step in the Grover Norquist/Bush Cartel plan to dismantle Medicare and Social Security.

Of course, the only winners in the GOP Medicare bill will be the insurance companies. As Washington Post columnist E.J. Dionne observed: "How do you know this bill is such a great deal for the drug companies and HMOs? On word of an agreement last week, share prices of drug stocks soared." [LINK]

Why are the AARP board of directors and its CEO assisting the Republicans in taking the first steps to dissolve Medicare?

Here are some thoughts:

* * *

One BuzzFlash Reader Wrote Us This:

There is an apparent reason for AARP to support health care legislation. They are paid a fee from each of the insurance companies that they recommend.

Just go to their Web site - they don't keep it a secret. Do you really think that they would be spending $7 million on advertising if this weren't so.

And Another BuzzFlash Reader Forwarded These Quotations to Us:

"Critics say AARP, which formally unveiled its new headquarters building in downtown Washington last month, has softened its earlier militancy because it is preoccupied with its profit-making enterprises, including $100 million in earnings from the sale of insurance, mostly Medicare supplemental policies."
- Newsday, 10/21/2000

"AARP's receives more than $100 million in revenue from health insurers."
- Denver Post, 5/21/96

"Critics suggest that AARP's substantial profits from the sales of Medigap and other insurance policies, drug company advertising in its magazines, and investment schemes conflict with its interests on behalf of seniors...AARP President William Novelli acknowledged complaints from members that AARP has been too timid in the political battles to defend Medicare and Social Security. He conceded that AARP has pulled its punches since right-wing groups and members of Congress criticized it as too liberal."
- Newsday, 2/19/02

"AARP's pharmacy service is part of its insurance sales operation which generated $101 million in revenue last year - 17 percent of the organization's total budget."
- Capitol News Service, 8/15/02

"AARP receives millions of dollars from UnitedHealthcare, a national health insurance firm based in Minnesota."
- Milwaukee Journal Sentinel, 2/24/

* * *

And This Just In From a Third BuzzFlash Reader...

Buzz,

Found these quotes from AARP CEO Novelli's old company, Porter/Novelli:

"Put your words in someone else's mouth... There will be times when theposition you advocate, no matter how well framed and supported, will not beaccepted by the public simply because you are who you are. Any institutionwith a vested commercial interest in the outcome of an issue has a naturalcredibility barrier to overcome with the public, and often with themedia.(FN1)"

Mario Cooper, senior vice president of PR firm Porter/Novelli, says thatthe challenge for a grassroots specialists is to create the impression thatmillions of people support their client's view of a particular issue, sothat a politician can't ignore it; this means targeting potentialsupporters and targeting 'persuadable' politicians. He advises: "Databasemanagement companies can provide you with incredibly detailed mailing listssegmented by almost any factor you can imagine."(FN13) Once identified,potential supporters have to be persuaded to agree to endorse the corporateview being promoted.

[LINK]

What could be a bigger coup than to put the head of an astroturf PR firm in charge of AARP [he started Jan. 2000] so you could make it appear that the millions of AARP members support dismantling Medicare under the guise of a flawed Persctiption Drug bill?

Will Novelli next move to the NEA and suddenly the teachers will be supporting vouchers for private schools?

Linda Wymore

* * *

Final BuzzFlash Note: In E.J. Dionne's column, he noted: "But if privatization is such a good idea, why do the private insurance companies need such big subsidies to enter the Medicare market? The bill includes $12 billion for what Kennedy calls a "slush fund" to subsidize the private insurers. That's not capitalism or competition. It's corporate welfare."

Ah yes, and the CEO of the AARP and the Board of Directors apparently want a piece of the insurance industry corporate welfare pie, while putting seniors at long-term risk as the Republicans work to dissolve the current Medicare risk pool.

The AARP Capital Beltway "Suits" are going to go to bat for the Republican Party, doing their soft money campaigning for them, through $7 million in ads that could have gone toward increased benefits for their senior members.

But the AARP CEO and Board of Directors want to get in on the GOP gravy train. And they know that the Bush Administration runs a cash and carry government.

So Novelli is shelling out the cash for ads.

Meanwhile the AARP members are getting burned.

A BUZZFLASH READER CONTRIBUTION

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