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GOP lawmakers see AARP profiting from reform law, question group’s tax status
Modern Healthcare

A new federal report concludes AARP could make $1 billion in profits (PDF) in the next 10 years as a result of the healthcare reform law and it questions the tax-exempt status of the organization representing America’s seniors. Reps. Charles Boustany (R-La.,), Wally Herger (R-Calif.) and Dave Reichert (R-Wash.)—all members of the House Ways and Means Health Subcommittee—released the report, which cited Richard Foster, chief actuary at the CMS, as saying that about 6 million to 7 million Medicare Advantage beneficiaries will leave those plans and will “want auxiliary coverage, and Medigap will be the most straightforward way to get it.”