Tuesday, December 2, 2014


The organization known as AARP is NOT what you think it is. It is not a retired persons advocacy group and has not been since at least 1999 when it officially changed its name from "American Association of Retired Persons" to AARP.

AARP, Inc. is still officially a non-profit 501(c)(4) but it is also a parent organization that wholly owns other 501(c) organisations as well as a number of for-profit organizations.

Two of the for-profit organizations focus on insurance and these companies generate the lion's share of AARP earnings. At least 46% of AARP revenues are generated by royalties on AARP endorsed insurance programs, the majority of this from their Medicare-related insurance products. This may explain in part why AARP was in favor of and supported the ACA (Obamacare).

Along with Medicare Advantage, AARP also earns paid endorsements for Medigap plans. Public records show that AARP earns 4.95% of seniors' premiums for every Medigap policy sold under its name. As a result of this arrangement, AARP directly benefits as Medigap enrollment increases. Around 91% of Medicare beneficiaries are also enrolled in some form of supplemental coverage (like Medigap). This is worth close to $700 million in revenues a year to AARP.

AARP is focused on selling (really earning from endorsing) insurance to seniors. They supported the ACA not because it was good for seniors but because it was good for their bottom line.

Is all of these insurance changes, the reduced coverage, the reduced networks, the increased costs really worth those meal discounts you get with your AARP card?

You can read the complete government report on AARP here.

I will not be giving AARP any of my money.

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