During an ad for his sponsor Generation America, which bills itself as “a conservative alternative to other retirement associations” -- a presumed reference to AARP -- Glenn Beck today made several incorrect and misleading assertions while unfairly attacking AARP.

Beck read from an AP story noting the fate of annual cost-of-living-adjustments (COLA) for Social Security beneficiaries and premiums for Medicare Part B Beneficiaries. The piece explained that while the government is projecting a slight cost-of-living adjustment for Social Security benefits, “for most beneficiaries, rising Medicare premiums threaten to wipe out any increase in payments.”

Beck commented:

David Certner of AARP estimates that as many as three-fourths of beneficiaries will have their entire Social Security increase swallowed up by rising Medicare premiums next year. I thought we didn't have a problem with any of this. And it's a good thing that AARP is there with their gap insurance, isn't it. Oh you bet they've been fighting for you -- or fighting for something that doesn't look anything like you for quite some time. Don't rely on AARP. Make the move now to Generation America.

[...]

Now, why would you go to AARP? Why would you go to the people that worked with the Obama administration so they could sell more gap insurance? Why would you listen to the cries of the bell from the now town-crier AARP when they said nothing, when they said nothing before? They could profit then, and they're going to try to profit now.

What is the real relationship between Social Security and Medicare premiums? According to the AP story, Social Security COLAs “are determined each year by a government measure of inflation. When consumer prices go up, payments go up. When consumer prices fall, benefits stay flat until prices rebound.” According to the Kaiser Family Foundation, Social Security has a “hold-harmless” provision that “prevents a reduction in Social Security payments that would otherwise occur for an individual if the monthly Part B premium increase is larger than their monthly Social Security cost-of-living increase.” In other words, if Medicare Part B premiums outpace the annual Social Security COLA, the hold-harmless provision ensures that seniors still receive the same net amount as the previous year. For 2012, that provision is likely to be in effect.

The point of the AP story is that Medicare premiums and Social Security COLAs are based on economic conditions and medical costs, and neither the AARP nor the health reform that Beck lambasts -- of which the vast majority has yet to be implemented -- has anything to do with it.

But if things are as Beck says and AARP (a non-profit) is excited about the lack of a large COLA because it can “sell more gap insurance,” why did AARP chief operating officer Tom Nelson, after the government's announcement that there would be no COLA in 2009, release a statement saying, “For over three decades, millions of Americans have counted on annual increases to help make ends meet. In this economy, having this protection is even more critical for the financial security of all older Americans”? Why did AARP lobby Congress in 2009 to “provide $250 in economic relief to millions of seniors who count on Social Security to pay their bills”?

The true story of AARP “profits” and the insurance they “sell” is this:

• AARP endorses products and services -- including MediGap insurance -- from private companies in exchange for which it receives royalties.
• In 2009, "[t]he products and services offered by AARP-endorsed providers provided nearly $657 million of royalty revenue directly to AARP...."
• “These financial resources helped AARP to build and grow community projects, support advocacy efforts at the national and state levels and to leverage the power of AARP members.” [AARP, 2009]

That sounds like neither “profit” nor staying silent on issues important to seniors.

This ad was nothing but a misleading and unfair hit on AARP.

(P.S. You know who also makes Medicare gap insurance available to its members? Generation America.)