AARP’s support was instrumental in getting Obamacare passed. Now they’re raising the price of insurance for their employees because of the massive tax on so-called “Cadillac” plans that it included.
In an e-mail to employees, AARP says health care premiums will increase by 8 percent to 13 percent next year because of rapidly rising medical costs.
And AARP adds that it’s changing copayments and deductibles to avoid a 40 percent tax on high-cost health plans that takes effect in 2018 under the law. Aerospace giant Boeing also has cited the tax in asking its workers to pay more. Shifting costs to employees lowers the value of a health care plan and acts like an escape hatch from the tax.
…AARP officials said medical inflation is the main reason employee costs will be going up. The health care law is “a small part,” said David Certner, legislative affairs director.
Will Sebelius respond with more threats designed to intimidate providers into keeping quiet about the reasons for rate hikes? As opposed to insurance companies, AARP is a key Obama constituency, so we can bet not.
