The American Commitment report said AARP has shifted from relying on membership fees to generating revenue through a close relationship with UnitedHealth Group, the nation’s largest health insurance company.
The American Commitment report, titled “How AARP’s profits harm patients and violate its principles,” found AARP says it has increased its revenue through its close relationship with UnitedHealth by building a “loyalty fee” into the premiums of people who buy Medicare supplement, or Medigap, insurance. UnitedHealth licenses these his Medigap and Medicare Advantage plans, which have grown annually for “more than 20 consecutive years.”
The nonprofit American Association of Retired Persons (AARP) has received about $9 billion in tax-free income from UnitedHealth since 2007.
An American Commitment study conducted by Juniper Research Group found that AARP’s revenue increasingly comes from business profits rather than dues from members.this It contains:
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AARP has earned an estimated $9 billion in tax-free income from UnitedHealth since 2007.
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2022 AARP revenue from UnitedHealth alone is estimated to be approximately $862 million.
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AARP paid out more than $1.1 billion in total corporate royalties in 2022, three times what AARP members pay in dues and nearly 60 percent of its total annual revenue.
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AARP members’ dues income decreased by more than $5 million in 2022, while royalty income increased by more than $47 million. ”
Although older Americans appear to have a positive view of AARP, many have concerns about the nonprofit’s actions.
American Commitment sampled AARP members and found that 75 percent of those surveyed believed that AARP’s “loyalty fees” “created a conflict of interest” and affected AARP’s ability to represent the interests of seniors. It turns out that they think there is a possibility of giving. More than 62% of the association’s seniors believe AARP’s 4.95% surcharge amounts to an unnecessary “junk fee.” More than 87% of AARP members think AARP should have opposed diverting Medicare revenue to fund “unrelated spending and tax cuts.”
AARP has pushed Democratic policies on this issue, which is considered a conflict of interest, but AARP CEO Jo Ann Jenkins receives nearly $1.6 million in salary, benefits, and other compensation. Ta. This is not limited to his CEO. Of the 14 other AARP officers listed on the nonprofit’s 2022 Form 990, all received more than $500,000 in compensation.
Almost a majority (48%) said they would be “less likely to trust AARP” if they learned about AARP’s position on the Inflation Control Act and its relationship with UnitedHealth. [is] We act in the best interests of older Americans. ”
The report finds that this close business relationship between AARP and UnitedHealth creates perverse incentives for the nonprofit organization for retired Americans to advocate for policy on Capitol Hill. ing.
AARP also actively supported health care reform through the $700 billion Inflation Control Act, which wiped out $250 billion in Medicare “savings” and shifted it to unrelated spending, which Democrats generally agree with. This is a serious spending tactic, the report said. The report also found that polls show about 90% of older Americans oppose the move.
AARP too approved American Commitment argues that the Inflation Control Act’s policy of “negotiating” prescription drug prices stifles innovation and impedes the discovery of new drugs. For example, biotech company Seagen has halted research into another application of its successful bladder cancer treatment, citing “lack of economic benefit.”
The American Commitment is based on the billions of dollars that AARP receives from UnitedHealth, including premiums for people who purchase Medicare Supplement and Medigap insurance, licenses for Medigap and Medicare Advantage coverage. (including royalty fees included in the grants) undermined AARP’s policy stance.
America’s Commitment Report found:
AARP’s financial conflicts have led it to abandon its principles time and time again in pursuit of its own financial interests and interests. its partners, and its members around the organization’s stated mission and policy goals. Analysts at the Committee for a Responsible Federal Budget said: “It’s hard to know whether they’re advocating for business interests or the seniors they’re supposed to represent.” [Emphasis added]
“The fact that many of AARP’s own members are troubled by the organization’s conduct suggests that Congress should follow up on its own previous investigations by further investigating the unsavory partnership between AARP and UnitedHealth,” the report said. “This should give legitimacy to the upload.”
“This report is a devastating indictment of AARP’s public policy commitments and financial priorities, and its efforts to portray itself as an advocacy organization for older Americans. It exposes how it actually works in stark contrast to ongoing efforts,” said American Commitment Chairman Phil Karpen. Said In a statement.
“AARP is often active and visible when laws like IRAs benefit large insurance companies like UnitedHealth. AARP is largely silent when it comes to addressing billions of dollars in Medicare overbilling and denial of patient care.
Sean Moran is a policy reporter at Breitbart News. Follow him on Twitter @SeanMoran3.
