AARP is a membership organization for geriatrics and operates as a non-profit advocate for its members and is one of the most powerful lobbying groups in the United States.
| Website | http://www.aarp.org/ |
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AARP - insurance companies in USA
AARP has seven affiliated organizations: AARP Foundation, a non-profit charity that helps people over age 50 at social and economic risk; AARP Institute, a non-profit charity that holds some of AARP's charitable gift annuity funds; Legal Counsel for the Elderly, a non-profit charity that provides low- or no-cost legal assistance to seniors in Washington, D.C.; AARP Experience Corps, a non-profit charity that encourages people over age 50 to mentor and tutor school children; AARP Insurance Plan, a non-profit social welfare organization that holds some of AARP's group health insurance policies; AARP Financial Services Corporation, a for-profit corporation that holds AARP's real estate; and AARP Services Inc, a for-profit corporation that provides quality control and research. According to AARP's 2008 Consolidated financial statements, AARP Services Inc. was paid $652,000,000 in royalties from insurance companies that sold products referred by AARP. AARP also received an additional $120,000,000 for the advertisements placed in its publications.
The AARP Foundation's website claims the nonprofit "wants to win back opportunity for those now in crisis, so thousands of vulnerable low-income Americans 50+ can regain their foothold, continue to serve as anchors for their families and communities and ensure that their best life is still within reach." Key areas of focus are hunger, income, housing and isolation. The Foundation's vision is "a country that is free of poverty where no older person feels vulnerable".
As of April 2014, AARP claims it has more than 37 million members, making it one of the largest membership organizations in the United States.
History
According to the group's official history, Dr. Ethel Percy Andrus founded AARP in 1958. AARP evolved from the National Retired Teachers Association (NRTA), which Andrus had established in 1947 to promote her philosophy of productive aging, and in response to the need of health insurance for retired teachers. After ten years, Andrus opened the organization to all Americans over 50, creating AARP. Today, the NRTA is a division within AARP. Dr. Andrus founded AARP while living in Ojai, California, where she had established an innovative new retirement home named Grey Gables. Ojai served as national headquarters for AARP from 1958 until the mid-1960s. Honors to Dr. Andrus include National Teacher of the Year in 1954, induction into the Women's Hall of Fame and, more recently, a medallion placed on the Points of Light Institute's "Extra Mile Pathway" in downtown Washington, D.C.
Critics of AARP offer an alternative version of the group's origins. 60 Minutes reported in a 1978 exposé that AARP had been established as a marketing device by Leonard Davis, founder of the Colonial Penn Group insurance companies, after he met Ethel Percy Andrus. According to critics, until the 1980s AARP was controlled by Mr. Davis, who promoted its image as a non-profit advocate of retirees in order to sell insurance to members. Possibly as a result of the 60 Minutes report, AARP conducted a lengthy competitive bidding process, and, in 1980, shifted the insurance contracts made available to members to Prudential Financial.
In the 1990s, the United States Senate investigated AARP's non-profit status, with Republican Senator Alan Simpson, then chairman of the United States Senate Finance Subcommittee on Social Security, Pensions, and Family Policy, questioning the organization's tax-exempt status in congressional hearings. According to Charles Blahous, the investigations did not reveal sufficient evidence to change the organization's status, though in an interview years later by the Des Moines Register, Senator Simpson remained "troubled by AARP's practices", calling AARP "the biggest marketing operation in America and money-maker" and an organization whose practices are "the greatest abuse of American generosity I witnessed in my time in the U.S. Senate".
The organization was originally named the American Association of Retired Persons, but in 1999 it officially changed its name to "AARP" (pronounced one letter at a time, "ay ay ar pee") to reflect that its focus was no longer American retirees. AARP no longer requires that members be retired, but be at least age 50; it does not extend full membership privileges to applicants who are retired but not yet 50 (although a membership includes free membership for a spouse or partner who may not yet be 50).
Activities
Overview
AARP is widely known for addressing issues affecting older Americans through a multitude of initiatives, including lobbying efforts at the state and national governmental level, an activity permitted by its 501(c)(4) status. The organization says that it is non-partisan and does not support, oppose or give money to any candidates or political parties. AARP's total revenue for 2006 was approximately $1 billion and it spent $23 million on lobbying. Middle-class security has been a major focus for the organization in recent years. AARP also provides extensive consumer information, volunteer opportunities, and events including the annual National Event & Expo (2013 in Las Vegas from May 30–June 1 and in Atlanta from October 3–5). One of AARP's goals is to reduce hunger among seniors through the Drive to End Hunger. In 2011, AARP and AARP Foundation formed a relationship with NASCAR driver Jeff Gordon and Hendrick Motorsports to increase awareness of hunger in America with the No. 24 Drive to End Hunger race car and related food drives. Through the Drive to End Hunger program, AARP also sponsored Hendrick driver Kasey Kahne, beginning in 2016.
AARP launched Life Reimagined in May 2013, calling it a "first-of-its-kind series of online and offline experiences that guide people through life transitions by helping them discover new possibilities and connect with a community of people pursuing similar passions and goals". USA Today called Life Reimagined "the latest step for the AARP (formerly known as the American Association of Retired Persons) as it continues to rebrand itself and become the go-to address for feeling good about aging.
Health insurance
Approximately seven million people have AARP branded health insurance, including drug coverage and Medigap, as of April 2007 and AARP earns more income from selling insurance to members than it does from membership dues. In 2008, AARP plans to begin offering several new health insurance products: an HMO for Medicare recipients, in partnership with UnitedHealth Group; and a PPO and "a high-deductible insurance policy that could be used with a health savings account" to people aged 50–64, in partnership with Aetna. AARP will likely become the largest source of health insurance for Medicare recipients, and AARP estimates the new products will increase its health insurance customers to 14 million by 2014.
While AARP is not an insurer, in that it does not pay insurance claims, it does allow its name to be used by insurance companies in the sale of insurance products, for which it is paid a commission.[40]
Senator Charles E. Grassley (R-Iowa), senior Republican on the Senate Finance Committee, said in 2008 that the "limited benefit" insurance plans offered by AARP through UnitedHealth provided inadequate coverage and were marketed deceptively. One plan offered $5,000 for surgery that may cost two or three times that amount.
AARP conducts a thriving business in marketing branded Medigap policies. As of October 2009, Medical care reform contained a proposal to trim an associated program Medicare Advantage, which was expected to increase demand for Medigap policies.However, as cited above, AARP also brands a Medicare Advantage plan (MedicareComplete), and would also be subject to cuts under health care reform.
According to an Annenberg Public Policy Center report, critics have said AARP had a conflict of interest in supporting the Act, because AARP "derives income from the sale of health and life insurance policies", by licensing its brand to insurance dealers such as New York Life, and would benefit financially from passage of the legislation.
In 2004 BusinessWeek said questions have arisen in the past about whether AARP's commercial interests may conflict with those of its membership, and characterizes many of the funds and insurance policies that AARP markets as providing considerably less benefit than seniors could get on their own.
Single payer
Single-payer advocates have criticized AARP for not supporting the single-payer or public option during the health care debate.Single-payer advocates supported H.R. 676, proposed by Rep. John Conyers (D-MI). AARP released a statement explaining to its members why the organization was not supporting H.R. 676:
Starting over with a new, "single-payer" program will not eliminate the problems Medicare, Medicaid, and SCHIP currently face, such as the spiraling costs of procedures and prescription medications, as well as technological advances that are often not comprehensively tested to be proven safe or effective before marketing. H.R. 676 does not address the problem of increasing health-care costs. Rather, it allows costs to continue to grow, which will result in unaffordable coverage.
John Rother, AARP's former chief lobbyist, said the single-payer model would "disrupt the system that is currently in place" and "would require a very significant tax increase." But Rother admitted that it would be possible to design a system that would avoid these problems and function well. AARP's priorities now are to protect the current programs and implement the Affordable Care Act. Rother said that any effort to promote single payer would be undercutting health reform. Rother said. "To go to a single-payer you do have to trust government. The climate we're in right now is a very hostile climate for something like that."
Rother also thought that an educational effort on the benefits of single payer would undercut the ACA. AARP has not published any material relating to single-payer health insurance on its website, in its several hundred page policy book, or through its Public Policy Institute.
Approximately 60,000 AARP members quit AARP between July 1 and August 18, 2009, in a controversy that arose over AARP's support for U.S. health care reform. FOX News stated, "The Atlanta-based American Seniors Association, which is opposed to President Obama's health care plan, is trying to capitalize on growing public dissatisfaction with the AARP." AARP spokesman Drew Nannis responded that AARP loses about 300,000 members a month on average, and the controversial 60,000 of those that had left had specified leaving over the Health Care debate. Nannis also stated that the AARP gained 400,000 members and that 1.5 million members renewed their memberships within the same period of time. The American Seniors Association is a for-profit organization operated by the American Seniors Association Holding Group, Inc (ASAHG, Inc).
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