document: Republicans challenge influential seniors group WASHINGTON -LRB- Reuters -RRB- - Republicans in the House of Representatives on Friday accused the AARP of gaining financially from President Barack Obama 's healthcare overhaul , which the powerful advocacy group for older Americans supported . Republican members of a House Ways and Means subcommittee grilled AARP Chief Executive Officer Barry Rand and AARP President Lee Hammond on the nonprofit organization 's health insurance operations . Rand defended the group 's public policy positions and said money received from insurance licensing agreements was used to fund social-welfare programs for AARP 's 37 million members . Republicans argued that the group would gain financially by cutbacks in the law to the Medicare Advantage program that delivers Medicare health benefits through private insurers . '' `` The facts show AARP no longer operates like a seniors ' advocacy organization , '' '' said health subcommittee Chairman Wally Herger , a California Republican . '' `` Instead , it more closely resembles a for-profit insurance company . '' '' Herger was referring to a report on AARP finances and operations that he wrote with fellow Republican Representative Dave Reichert and which was released this week . They have asked the Internal Revenue Service to investigate AARP 's tax-exempt status as a nonprofit organization . Democrats questioned the motives of Republicans for holding the hearing , saying it was political payback for supporting Obama 's healthcare restructuring . '' `` Your sin ... is that you backed the Affordable Care Act , '' '' Democratic Representative Jim McDermott said to Rand . LOSING MONEY Rand challenged the Republican report 's findings saying : '' `` We reject the allegation that our public policy positions are influenced by our revenues . '' '' He said that it was more likely the group would lose money under the law , as AARP-branded insurance plans for people between 50 and 64 become obsolete when insurance companies in 2014 can no longer exclude people from coverage because of medical history . The healthcare law also beefs up the Medicare drug benefit for the elderly and limits how much more insurers can charge older people for coverage compared to younger people . UnitedHealth Group Inc. offers supplemental health plans , called medigap plans , using the AARP brand . The plans fill in the coverage gaps left by traditional Medicare . The company also offers a Medicare Advantage plan , which offer more comprehensive coverage , through AARP . Aetna offers AARP-licensed health plans to the 50-64 age group . The Republican report said that Aetna plans represent a small portion of the $ 657 million in insurance royalties received by AARP in 2009 . Sixty-five percent of AARP royalties come from medigap products that stand to gain from the healthcare law , the report said . Reichert said that the report pointed to '' `` a direct conflict of interest between AARP 's advocacy for eliminating the Medicare Advantage program ... and the massive profits AARP receives from sponsoring medigap plans . '' '' Rand said the money was used to support AARP 's social welfare programs , which include helping older Americans find jobs , providing information on financial security and aiding the hungry . It is not the first time AARP 's nonprofit tax status and its insurance affiliations have been questioned . In 1995 then Republican Senator Alan Simpson , who served as co-chairman of Obama 's deficit commission last year , probed the organization 's business practices . The group came under fire from Democrats in 2003 for its support of the Republican-backed Medicare prescription drug plan . -LRB- Reporting by Donna Smith ; Editing by Xavier Briand -RRB-
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