AARP Has Been Paid More Than $9 Billion Via Its Corporate Partner
Washington, D.C. — April 24, 2024 — Today, as part of its “Commitment to Seniors” initiative, American Commitment released a comprehensive report conducted by Juniper Research Group that explores the deep financial relationship AARP has with UnitedHealth Group, the nation’s largest health insurance and pharmacy benefit management (PBM) corporation.
Key findings include:
AARP has received an estimated $9 billion in tax-free revenue from UnitedHealth since 2007.
AARP revenue in 2022 derived from UnitedHealth alone is estimated to be around $862 million.
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.
AARP member dues revenue fell by over $5 million in 2022, yet royalty revenues grew over $47 million.
AARP actively supported the Inflation Reduction Act (IRA) spending bill despite its diversion of over $250 billion in Medicare “savings” to unrelated spending (polls show nearly 90% of 55+ likely voters now oppose AARP having done so).
Meanwhile, AARP remains largely quiet on other key reforms and issues of concern, including bipartisan insurer-PBM reforms, premium increases, Medicare overcharges, patient care denials and more.
“This report is a devastating indictment of AARP’s public policy engagements and financial priorities, exposing the way AARP actually functions in stark contrast to its ongoing attempts to portray itself as an advocacy group for older Americans,” said Phil Kerpen, president of American Commitment. “Where legislation like the IRA is beneficial for big insurers like UnitedHealth, AARP is often aggressively and visibly active. But on PBM reform or addressing premium increases and high out-of-pocket expenses, billions in Medicare overcharges or patient care denials, AARP is largely silent.”
Commitment to Seniors Senior Advisor Bob Johnson states, “Too many seniors and policymakers have trusted AARP to be an advocate, but this report proves they don’t deserve our trust. I discovered long ago that AARP doesn’t speak for older Americans. Their lucrative relationship with health insurance behemoth UnitedHealth raises serious concerns about whose interests they really serve. It’s time for transparency and accountability from AARP. Their members and older Americans everywhere deserve no less.”
UnitedHealth Group’s reported earnings in 2023 totaled over $371 billion, making it one of the largest companies in America. In addition to its health insurance and PBM businesses, UnitedHealth also owns large subsidiary businesses comprised of primary physician and urgent care practices, specialty pharmacies, surgical centers, home health and health IT companies, an FDIC-insured bank and more. In fact, UnitedHealth, in addition to being the largest health insurer, is now the largest employer of physicians in America as a result of recent investments and acquisitions.
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American Commitment is dedicated to restoring and protecting our nation’s commitment to free markets, economic growth, Constitutionally-limited government, property rights, and individual freedom. American Commitment engages in critical public policy fights over the size and intrusiveness of government through direct advocacy, strategic policy analysis, and grassroots mobilization. Visit us online at www.AmericanCommitment.org.
Juniper Research Group is a consulting and analytics firm based in Washington, DC, led by CEO Chris Jacobs, a noted policy analyst and author whose opinions and work has appeared in the New York Times, Wall Street Journal, Politico and other national news platforms. Jacobs previously served as a Senior Policy Analyst for the Heritage Foundation and the Congressional Joint Economic Committee, as well as a policy advisor to Members of Congress on Capitol Hill. He is the author of “The Case Against Single Payer.” More about Juniper Research Group can be found online at www.JuniperResearchGroup.com.
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