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CORRECT: AARP Endorses House Health-Care Overhaul Bill

("UPDATE: AARP Endorses House Health-Care Overhaul Bill," published at 1:25 p.m. EST incorrectly described AARP's postition on Social Security privatization. The corrected version follows.)

By Jared A. Favole

Of DOW JONES NEWSWIRES

WASHINGTON -(Dow Jones)- The world's largest senior lobby, AARP, on Thursday endorsed the health-care bill pending in the U.S. House, saying it improves benefits for seniors and ensures they will get "the doctors they need when they need them."

AARP's endorsement marks the first time the lobby has put its weight behind a comprehensive health-care overhaul bill. The House is expected to vote on the bill as soon as Saturday.

AARP Chief Executive Barry Rand, speaking while surrounded by more than 50 boxes that include 1.5 million AARP member petitions supporting health-care reform, according to AARP, praised the legislation for placing strict limits on how much more insurance companies can charge seniors based on age and closing the Medicare prescription drug gap.

The health care legislation has sparked controversy among AARP members, some who have left or threaten to leave because of their concerns over the pending bill. Rand, when asked directly about how many AARP members had left or would leave, said even when AARP members do leave the often come back. He cited how in 2003 AARP lost members who disagreed with the organization's unwillingness to support of privatizing Social Security. He said many rejoined the group.

Bonnie Cramer, chair of AARP's volunteer advisory board, said one key criteria for supporting the House bill was that it isn't supposed to add to the national debt. "Our members are worried about the financial security for their children and grandchildren," she said.

John Rother, executive vice president of policy at AARP, said the group would like to see a final Senate version of the bill, which is yet to happen, include provisions to close the Medicare prescription drug gap, often called the doughnut hole, and ensure insurance companies don't discriminate against members based on their age.

The final House bill and draft Senate bills include language that would give biotechnology companies 12 years of exclusivity to sell their drugs before facing competition from cheaper, generic alternatives. Rother said that number was excessive and thinks seven years of exclusivity for brand-name drugs is more appropriate. The White House has told Congress it thinks seven years strikes the right balance between innovation and gives patients access to cheap generics.

AARP also endorses a bill in the House that would prevent the pending 21.5% cut in reimbursement rates for doctors who see Medicare patients. Cramer said members "strongly" oppose cutting these reimbursement rates, as it is already difficult for Medicare patients to find doctors who will treat them.

-By Jared A. Favole, Dow Jones Newswires; 202.862.9207; jared.favole@ dowjones.com

  (END) Dow Jones Newswires
  11-05-091403ET
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