Report Details Conflicted Relationship Between AARP, UnitedHealth Insurance

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AARP has shifted from relying on dues from members and towards revenue from its tight relationship with UnitedHealth Group, the nation’s largest health insurer, according to a report from American Commitment.that AARP has increased its revenue through its tight relationship with UnitedHealth by embedding “royalty fees” within the premiums of those who purchase Medicare supplemental policies, or “Medigap” insurance.

AARP was paid more than $1.1 billion in total corporate royalties in 2022 – three times more than AARP’s members pay in membership dues – and account for nearly 60 percent of all annual revenues. American Commitment sampled a subset of AARP members and found that 75 percent of those surveyed believe the AARP “royalty fee” “creates a conflict of interest” that could impact AARP’s ability to represent seniors’ interest. More than 62 percent of the association’s seniors think that AARP’s 4.95 percent surcharge amounts to an unnecessary “junk fee.

The report finds that this tight business relationship between AARP and UnitedHealth creates a perverse incentive when the nonprofit for retired Americans advocates for policies on Capitol Hill.the $700 billion Inflation Reduction Act’s healthcare reforms, which took $250 billion Medicare “savings” and shifted to unrelated spending, which the report noted is a common Democrat spending tactic. The report also found that polls show roughly 90 percent of American seniors oppose this move.

 

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