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t from Democrats, who charge it would "end Medicare as we know it." The Senate rejected it in a vote last week, but also unanimously struck down an alternative plan proposed by President Obama.
Democrats said they wanted to leave it off the table while Vice President Biden leads a bipartisan group of senators to come up with a new budget that would include cuts in spending that would satisfy lawmakers who don't want to increase the nation's borrowing limit without reducing government's size.
"The one thing we can't do is nothing," McConnell said. "The president, to his credit, is at the table. ... We're going to negotiate the contours of the plan in these negotiations. I'm personally very comfortable with the way Paul Ryan would structure it in the out years, but we have a Democratic president. We're going to have to negotiate with him on the terms of changing Medicare so we can save Medicare."
Appearing on the same program, Sen. Chuck Schumer, D-N.Y., called on Republicans to abandon the House Medicare plan, noting an analysis by the nonpartisan Congressional Budget Office that says it would require seniors to shoulder an increasingly large share of their health care costs.
Schumer said there are only three options -- doing nothing, the Ryan plan or a Democratic vision that preserves benefits and changes "delivery systems," but does "not let providersin this one-sided report."
Democrats said the report was politically motivated, noting that Republicans lauded AARP's endorsement of the Medicare Modernization Act of 2003, which created a private Medicare drug benefit.
"But now, since AARP worked to help enact health reform and will surely oppose Republican plans to convert Medicare to a voucher, privatize Social Security and block grant Medicaid, Republicans want to bring them down," said Health Subcommittee Ranking Member Pete Stark of California in a statement.
AARP, which had revenues of $1.4 billion in 2009, makes money from royalty payments for products it endorses, membership dues, publication advertising and grants, and uses the proceeds to support its lobbying efforts and programs, such as free tax counseling for seniors. The Republican report takes issue with the organization's reliance on royalty income from insurers, which it says comprised almost 46 percent of AARP's revenue in 2009, and its support of health care reform, which could add to profits for the group.
Insurance Sales Resulting from Health Care Reform
Among many provisions, health care reform will cut government subsidies of Medicare Advantage plans, which provide Medicare coverage for hospital and outpatient care and additional services. The Obama administration projects the subsidy cut will prompt seniors to buy Medigap policies, which are supplemental health insurance plans that pay for costs not covered by Medicare Parts A and B.
AARP earns the largest portion of royalty income from Medicare-related insurance plans offered by UnitedHealthcare, including Medicare Advantage and Medigap policies. But financial agreements are structured differently for each, the report says. AARP earns a flat royalty fee for endorsing the insurer's Medicare Advantage plan and a per capita fee for each AARP-branded Medigap policy sold by UnitedHealthcare.
When seniors migrate to Medigap plans, the report estimates AARP will earn $55 million to $166 million in 2014 alone.
But in a conference call with reporters, AARP officials said revenues don't drive the group's policy positions, and that it had not studied how health care reform would impact demand for Medicare Advantage and Medigap plans. AARP supported the end of subsidies for Medicare Advantage plans to protect the long-term solvency of Medicare, said David Certner, the group's legal counsel and legislative policy director.
About three-fourths of Medicare beneficiaries pay higher premiums in order to subsidize the one-quarter of beneficiaries enrolled in Medicare Advantage plans, he said.
IRS Investigation Possible
It's difficult to project how long an investigation would take if the IRS launches an inquiry.
"It's certainly not something that will happen in a week," says New York University School of Law profess
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