Sunday, November 23, 2003

An 800-Pound Gorilla Changes Partners Over Medicare: "AARP, the organization representing retirees, has long been the 800-pound gorilla in the Medicare prescription drug debate. So when the group endorsed a Republican-backed Medicare bill last week, Democrats reacted with anger and alarm." Representative Nancy Pelosi of California, the Democratic leader in the House, complained that AARP was "in the pocket" of Republicans, and suggested that the group, which also sells insurance to its members, had a financial conflict of interest. Eighty-five House Democrats announced they would either resign from AARP, or refuse to join. But behind all the Democratic barbs at the organization itself is a seismic political shift that represents a broader threat to the party's appeal to older Americans. For decades, older Americans were reliable, and crucial, Democratic voters. As recently as last year, Senator Trent Lott, the former Senate Republican leader from Mississippi, derided AARP as a "wholly owned subsidiary" of the Democratic Party. Yet today's older Americans are increasingly voting Republican, a trend that experts say will likely continue as the baby boomers age and the generation of Eisenhower replaces the generation of F.D.R. Before making their endorsement, AARP officials conducted polls and focus groups of Americans 45 and older. The responses, they said, suggested support for a bill that would help the indigent and encourage employers to continue to provide the drug benefits they already offer. Still, surveys of people eligible for Medicare, those 65 and older, have repeatedly found what Drew Altman, president of the Kaiser Family Foundation, calls "a big expectation gap" between what retirees believe the prescription drug bill offers and the limited coverage it actually affords. But in the end, with Congress willing to spend $400 billion over 10 years, on the first-ever Medicare drug benefit for retirees, AARP decided an imperfect bill was better than no bill at all. "Well, we represent a constituency that doesn't have that much time to wait," said John Rother, AARP's chief lobbyist. "There was no prospect in the short term that we were going to get a better bill, and there was a real risk that we could end up with a worse bill." The endorsement was a huge victory for Republicans, but it came at a price: the AARP demanded bigger subsidies for low-income people, and incentives for employers to continue offering drug benefits.� But AARP's critics say its executive director, William D. Novelli, a former public relations man who took the helm of the organization two years ago, is playing a dangerous game by aligning himself so closely with Republicans. Mr. Novelli, who wrote a forward to a book by Newt Gingrich, the former Republican House speaker, defended himself last week against Democratic claims that he was a "closet Republican." "We intend to mend fences as soon as this is over," Mr. Novelli said of the Democrats on Friday. The fundamental debate over Medicare is whether the program should be administered privately, as many Republicans prefer, or by the government, the preference of Democrats and the AARP. By promoting a Republican-backed bill, the AARP is assisting a political party whose long-term goals are at odds with its own.� http://www.nytimes.com/2003/11/23/weekinreview/23STOL.html