New Report Exposes AARP’s Role in Push for Massive Insurance Bailouts Amid Government Shutdown Showdown
Washington, D.C. — As Congress faces a government shutdown, a new report from American Commitment exposes how AARP — a major lobbying force in Washington — is working hand-in-hand with the health insurance industry to make pandemic-era Obamacare subsidies permanent.
The report, “How AARP Makes Health Insurance Unaffordable for Its Members,” details how AARP received a staggering $9 billion payout from UnitedHealth, the nation’s largest health insurer, and has since used its lobbying arm to push for a $40 billion-a-year extension of supersized Obamacare subsidies—direct taxpayer payments to insurance companies.
“Democratic leaders Chuck Schumer and Hakeem Jeffries have shut down the government until taxpayers fork over another $40 billion a year to massive health insurance companies,” said Phil Kerpen, president of American Commitment. “It’s outrageous that they shut down the government to serve the same insurers who fund AARP’s billion-dollar kickbacks. Congress should say no to bailouts for big insurance.”
AARP’s Hidden Conflicts
According to the report, AARP has quietly built a financial empire tied to the very insurance companies now demanding more taxpayer money:
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$9.1 Billion Payment from UnitedHealth: In 2024, AARP restructured its licensing agreement with UnitedHealth and received a one-time $9.062 billion payment—31 times its total membership dues revenue—in exchange for an exclusive marketing deal.
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Lobbying for Subsidy Extensions: Despite claiming to champion “affordability,” AARP has lobbied Congress to make the enhanced Obamacare subsidies permanent—a taxpayer-funded bailout that would directly benefit its corporate partner UnitedHealth.
Subsidies for Insurers, Not Seniors
During the pandemic, Congress dramatically expanded Obamacare subsidies, signing up millions of people who paid nothing for their coverage. But new analyses show that allowing these temporary “COVID bonuses” to expire would still leave enrollees paying only a fraction of their premiums:
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At 100% of poverty, taxpayers cover 98% of premiums.
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At 150%, taxpayers cover 92%.
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Even at 200%, the subsidy remains at 81%.
“Why is that not enough?” Kerpen asked. “The truth is, these subsidies aren’t about helping patients—they’re about padding insurance company profits and keeping the AARP-UnitedHealth money machine running.”
A Call to Action
American Commitment is urging lawmakers to reject any deal that extends the supersized Obamacare subsidies or any other taxpayer giveaways to the insurance industry.
“It’s shameful that Schumer and Jeffries are demanding a massive ransom for mega-insurers like UnitedHealth—currently under criminal investigation—just to reopen government ,” said Kerpen. “Congress must stand up for taxpayers and seniors, not the special interests making billions off them.”