AARP’s Financial Gain From Health Care Law

Originally Posted by Committee On Ways and Means

Congressional Report Details AARP’s Financial Gain From Health Care Law

Washington, DC – Ways and Means Committee Members Wally Herger (R-CA), Dave Reichert (R-WA) and Charles Boustany (R-LA) today released “Behind the Veil: The AARP America Doesn’t Know,”  a new report exposing the conflict between AARP’s drive for profits, the best interests of its members and the organization’s tax exempt status.  The report, which is the culmination of more than a year-long investigation, concludes that AARP stands to make upwards of one billion dollars over the next ten years as a result of the new health care law through the sale of their endorsed-Medicare insurance products.  The Members have now turned over their findings to the IRS to determine if AARP has abused its tax-exempt status, and whether or not that status should be revoked.


  • AARP is in fact a large, complex and sophisticated organization with over $2.2 billion in total assets and had revenues in excess of $1.4 billion in 2009 alone.
  • AARP has four primary revenue sources: royalty payments (primarily from insurance companies), membership dues, publication advertising and grants (governmental and non-governmental). In 2009, AARP revenues from royalties were two and half times higher than its membership dues.
  • Since 2002, income generated from AARP membership dues has increased 32%, or $60 million. However, during this same period, income derived from AARP’s business relationships, primarily with insurance companies, has nearly tripled, increasing by $417 million.  Royalty payments from for-profit companies comprised nearly 46% of AARP’s revenue in 2009, while membership dues totaled just 17% of total revenues.
  • As a result of the new health care law, the Obama Administration estimates more than 7 million seniors will lose their current Medicare Advantage plans, resulting in a massive migration of seniors to Medigap plans.  AARP is the nation’s leading provider of Medigap plans and has a contract in which AARP financially gains for every additional Medigap enrollee.
  • Based on low, mid and high-range estimates, AARP stands to financially gain, over and above the millions of dollars they currently receive from United, between $55 million and $166 million in 2014 alone as a result of new Medigap enrollees stemming from the health care law’s cuts to MA, which AARP strongly endorsed.
  • Under the midrange estimate and under their current contract, AARP’s financial gain from the health care law could exceed $1 billion during the next 10 years. This is because AARP will see their royalty payments increase as seniors are forced out of MA plans and buy AARP Medigap plans instead.
  • Despite a massive increase in revenues, AARP’s cash and in-kind contributions to the AARP Foundation only increased 11% ($3.1 million) while cash and in-kind contributions to AARP’s Legal Counsel for the Elderly actually decreased 9% ($300,000) from 2004 to 2008 (the only years for which AARP provided data). Meanwhile, the AARP Foundation recently committed an estimated $14 million in each of the next three years to become the primary sponsor of NASCAR driver Jeff Gordon.
  • The AARP Foundation received government grants totaling over $97 million which comprised 81.9% of the Foundation’s total revenue in 2009.

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8 years ago

I havent had a chcane to respond to your last post that you considering stopping your blog. I have been reading the many comments from that still. I started reading your blog just before your accident and really felt a connection with you. I love hearing about your family and all the aspects of your life good and bad. I really hope you have decided to continue as many, many of us would miss you and all you have to say. I am still reading your past posts from your blog. You are a wonderful person with great wit and wisdom. Keep up being you!!! I will still be here when you are ready to start your couponing adventures and all parts of your life you wish to share with your readers. Keep up the faith and things will get better. Take care of you and yours as best you can. We will be here to support you. Jan- Maine

9 years ago

Just like the AMA, the AMA doesn’t reflect the triene view of most doctors in America. The AARP is similar. Many elderly or soon to be elderly should be in total fear of this health care vote. Most elderly don’t support this bill. Nothing but politics and MONEY!!

8 years ago
Reply to  Tay

Many thanks for the udtpae and I am wishing with you that you can progress to a walker. Fingers crossed Irene will boomerang back to the ocean before it reaches you. As a Brit myself we would buy clotted cream as it is so totally yummy in devon cream teas. Also we think it’s funny that you call Double cream, Heavy cream. I can almost see the back brace I would need to pick that off the shelves. I do hope you are mobile very shortly and keep up with the blogging. Don’t worry about couponing info. I read your blog and coupons don’t work the way here in the UK that they do in the States so none of of your technical info applies but I still come back for you, your personallity, spirit and your love for your family.Have a lovely day. Liz, Coventry, England

9 years ago

c 2 5c 17 8d Frequently I do not put up on blogs, but I would like to say that this sbiumt certainly pressured me to do so! genuinely great sbiumtc 39

9 years ago
Reply to  Marita

Obama bought aarp indorsement for obama care.

9 years ago

Who can you trust anymore????

9 years ago

I was a member of AARP at one time but I emailed a question to them, of which, I never received an answer. Plus they
advertise a auto insurance company as economical but I have found better plans that cost less. So…..why should I continue donating money to them.

I just recently heard about AMAC so I though I would check them out but after reading the above I’m not going to get involved with this organization either.

It’s so unfortunate, when an idea with good intentions sprouts only to be destroyed by greedy, power hungery people.
This sounds like most, if not all, governments.

Steve O
9 years ago

And what about Amac’s gain from the push to privatize medicare? If Amac is going to claim this as an issue they need to come clean on whether or not they are being paid royalties for the same medicare supplements they push as well.

I mean, if and when Medicare is privatized I am sure Amac will be pushing even more insurance policies on its website. So my take is that Amac can not claim the higher moral ground on this issue. And I am even more firm in my resolve considering this concern since they deleted my first comment with questions on this subject.

And don’t forget, AARP claims to have 40,000,000 members so it stands to reason their profit share from supplemental insurance policy sales would be quite a bit more than a smaller orgainzation like Amac, which can only claim 100K members.

9 years ago

It became apparent to me that when AARP kept dropping the age requirement that it was not nearly as interested in the aged as in expanding its influence be becoming huge. It’s succeeded well.

Steve O
9 years ago
Reply to  Al

And where is your accusition against Amac which has the exact same age requirements?

Please don’t delete this comment of will keep posting it with a count. Third post.

Steve O
9 years ago

Maybe Amac should have ITS tax exempt status show up in court too. If they claim to be “non-partisan” or “tax exempt” I would be happy to be the first one to initiate a class action suit with the IRS against them because Amac for sure is NOT non-partisan.

8 years ago
Reply to  Steve O

Qliance in Seattle has a very similar apracpoh. It’s a full-service primary care provider that charges a fixed monthly fee based on age, similar to health club membership. That fee gives you full access to all the services that a PCP can provide with small cash charges for things shots, x-rays, pharmaceuticals. Qliance helps the sick as well as the health, but catastrophic care requires insurance.The basic concept is simply brilliant.

9 years ago

Almost every one of you is the whiniest, old , pussy I’ve ever heard. You should be ashamed of yourselves….I bet most of you think you are christians, too. The problem isn’t liberals or conservatives, but the fact that if we looked past the two or three things that said groups disagree on….we are basically the same. Screw AMAC and the AARP…neither is looking out for seniors. Both are just taking advantage of tired old extremists on different sides.

9 years ago

Anyone thinking that AARP is looking out for Seniors is sadly mistaken. Don’t believe a word they say!!!

9 years ago

AARP will never get any of my money. Many relatives and friends have dropped their membership over them supporting Obamacare as well as the queers. As for the queers they should have no rights. This is their CHOICE of a lifestyle. Why should our money be used to support them?.

9 years ago

I’ve been out of AARP for a few years and never will go back. We have very serious problems in this country brought on by leftist/socialists, greed, out of control tort system, and “entitlement mentality”. Yes, just about all of us have at one time “bought into” the lies in some way, but is is time now to pay for the excesses. Much of it will, again, be “off the backs” of seniors and taxpayers. Social security might have survived intact if government had kept their hands out of the “cookie jar” and if they hadn’t become so liberal in handing out all the “bennies” to those who had not put their share into the system. I’m disgusted and resigned to “bite the big one”. But I’m willing to do it for my grandkids – not so that the government “thieves” can continue their practices. A pipe dream? Probably, but I’m still trying to do my part for the sake of what I knew we once were.

WT Fischer
9 years ago

I used to be a member of AARP but dropped my membership when I heard they favored Obamacare. I just heard about your organization and the first question I have is do you have any affiliation with UnitedHealthcare?

Beverly Conner
9 years ago

Why not coordinate both to help everyone? Is it because you are both greedy?

9 years ago

I was a member of AARP for 20 years, becoming a member in 1989. However, when I realized that they were for Obamacare (before it became a law) and were in line to receive special treatment, including people being steered in their direction, I cancelled my membership. In 2006, I paid $29.50 for a three year subscription. In 2009, I paid $43.00 for a three year subscription. How dumb was that? I paid the $43.00 in advance of the due date. I do have to give AARP credit for refunding my entire $43.00.

Devon J
9 years ago

I am 67 and have ignored AARP’s incessant mailings. I have returned their crap requesting that I be removed from their mailing list to no avail. I have had a good life and had hopes that my children and grandchildren would have the same opportunity. I would gladly eat dog food in my old age or even lay down my life if that is what it came to in order for them to have a good life too. However if Obama and his admin have their way I fear they will lose the status of citizens and become wards of the state. Four words meaning serfdom. AARP supports this outcome and wants to welcome you to the new USSR… United States Socialist Republic

9 years ago

My wife and I just joined AMAC and will let our current AARP membership expire as well as all our insurance coverage. May stay with United but am open to suggestions about other home, health and vehicle insurance? I feel like I just woke up from spendig the night at a Holiday Inn Express but have to admit that when I shared with a customer I was traveling with that I was an AARP member he quickly stated, ten years ago, that AARP was nothing more than a lobbyist organization that lived off of seniors and insurance company doles! I have to let him know that I finally woke up!!!!

10 years ago

I turned 50 during the time that the debate over Obamacare was at its peak. Immediately I began receiving “invitations” by mail to join AARP. Each time I received a mailing, I returned the included postage paid card to them with a note on the card adising them that as long as they supported H.R. 3962 I would not be joining their organization.

10 years ago

Do not kid youself neither party or politicans care about any working people in AMERICA any more just who has the most money to buy them. they are no diffrent from the AARP either. do not
be so stupid as to belive in any of there lies

10 years ago

I cancelled my membership with aarp when i found out they were ripping me off on my insurance.I am not happy that they support Obummer’s healhcare.I am very pleased with AMAC,i got better deals on my insurance needs.

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