Washington ( CNN ) -- Republicans are taking aim at America 's oldest senior citizens group , AARP , in the wake of a GOP-authored report that they contend exposed `` the conflict between AARP 's drive for profits , the best interests of its members and the organization 's tax-exempt status . '' Democrats counter that the attacks are based on the organization 's support of President Obama 's health care reform bill . `` The facts suggest that AARP has strayed from its core mission , '' Rep. Wally Herger , R-California , chairman of the House Ways and Means ' health subcommittee , said at a hearing Friday . He was one of those who released the report , titled `` Behind the Veil : the AARP America Does n't Know , '' this week . `` The facts show that AARP no longer operates like a seniors advocacy organization . Instead it more closely resembles a for-profit insurance company , '' he said . Herger 's subcommittee is now challenging AARP 's tax-exempt nonprofit status , looking into how the AARP does business and pointing to the organization 's profits from the sale of insurance and other products . The organization made nearly a third of its $ 1.4 billion budget through insurance sales in 2009 , American Public Radio 's Gregory Warner told the panel Friday . Rep. Charles Boustany , R-Louisiana , also argued Friday that the AARP has strayed from its original mission of protecting seniors . `` Contributions to the AARP Foundation between 2002 and 2009 grew by only 11 % , or about $ 3.1 million . And funding of the legal counsel for the elderly actually decreased by about 9 % , '' Boustany said . `` The parts of AARP that fulfill its original purpose seem not to be sharing in the bounty that has come to AARP from its insurance-related business activities . '' Democrats counter by pointing out that Republicans welcomed AARP 's 2003 support of the GOP push for Medicare reform , saying there were no such questions or hearings back then . Some members called the hearing `` political payback '' for AARP 's support of Obama 's health care reform efforts . `` We should see this for what it is , '' said Rep. Pete Stark , D-California , `` a waste of government time , and a vindictive attempt to settle a political score . '' The hearing `` amounts to nothing more than a political witch hunt to punish an organization that spoke out in favor of health reform , '' he said , adding that the Republicans aim is `` to discredit AARP in the minds of seniors . '' `` Before they announce a budget that will devastate Medicare , Social Security , Medicaid , they would like to silence AARP , '' Stark said . Barry Rand , AARP 'S CEO , told committee members that the organization has been nothing but transparent , in contrast to the `` Behind the Veil '' report 's implication that the organization had an ulterior motive for supporting health care reform . The report concluded that the AARP stands `` to make upwards of $ 1 billion over the next 10 years as a result of the new health care law through the sale of their endorsed-Medicare insurance products , '' according to a news release from Herger this week announcing the release of the report . `` We post on our website our annual reports , financial statements , IRS Form 990 tax returns and detailed breakdowns of our revenues and expenditures , '' Rand said . `` This is why we are surprised and disappointed both by the title and substance of the report . '' He said there is no veil and the organization disagrees with all of the conclusions reached in the `` one-sided report . '' `` First , we reject the allegation that our public policy positions are influenced by our revenues . Our policy positions are set by our all-volunteer board of directors based on the needs of our 50-plus population , '' he added . And Rep. Bill Pascrell Jr. , D-New Jersey , noted that `` the sixth-largest social welfare organization '' with the type of nonprofit classification AARP has `` is a tax-exempt race track and casino which operates in Iowa . '' `` I 'm sure you 'll help me understand why a race track and a casino are more deserving of this classification , because that 's what you 're getting at , '' he said . Former GOP Rep. Billy Tauzin , once the chairman of the House Energy and Commerce Committee , admits that attacking the AARP is risky . `` A perceived attack on AARP could easily backfire , giving Democrats an opportunity they could quickly use to paint themselves as the party best positioned to protect seniors in the future , '' he wrote in a Politico opinion piece . `` At the end of the day , I suspect AARP is likely to meet any reasonable test for non-profit status , '' he added . `` After all , it has no stock , pays no dividends and uses the profits it makes from sales and licensing to fund tax-exempt programs which assist seniors . '' CNN 's Xuan Thai contributed to this report .
The committee opens hearing hearings into AARP 's tax - exempt status . Republicans say the ` ` no longer operates like a seniors advocacy group '' Democrats say the hearing is ` ` political payback '' for AARP 's support of health care reform .