A report from American Commitment reveals that AARP has shifted its revenue source from membership dues to a close partnership with UnitedHealth Group, the largest health insurer in the country. The report highlights how AARP embeds “royalty fees” in the premiums of those who purchase Medicare supplemental policies, generating significant revenue from this relationship.
Since 2007, AARP has received around $9 billion in tax-free revenue from UnitedHealth, and its revenue from the insurer has been steadily increasing. This includes receiving more than $1.1 billion in corporate royalties in 2022 alone, making up nearly 60% of AARP’s annual revenues.
While AARP maintains a favorable image among American seniors, many have concerns about the organization’s ties to UnitedHealth. A survey found that a majority of AARP members believe the “royalty fee” creates a conflict of interest and question the organization’s advocacy for seniors.
The report also raises questions about AARP’s support for policies that benefit UnitedHealth, such as the $700 billion Inflation Reduction Act. Critics argue that AARP’s financial ties to UnitedHealth compromise its ability to represent seniors’ interests objectively. The report suggests that Congress should investigate this relationship further.
Overall, the report presents a critical view of AARP’s financial priorities and its impact on public policy. Phil Kerpen, president of American Commitment, describes the report as a “devastating indictment” of AARP’s advocacy for older Americans.
