AARP Medicare Plans: Take a Closer Look

Both Boomers and seniors have look to AARP for years to get what they have felt is reliable information regarding insurance. Most recently, seniors look to the organization for fair information regarding Medigap and Medicare Advantage coverage.

The problem is that during the recent past it has been discovered that AARP has not been exactly unbiased or up front when it comes to insurance, especially Medicare Supplements. It seems that AARP is on the payroll, so to speak.
For example, in addition to other perks, the president of AARP received over $1million in compensation from a particular insurance company.

Most of the time I have seen AARP advertise and push United American insurance policies and products and instead of offering choices of several companies to choose from, they simply push the company they are receiving money and perks from.

This can often leave Medicare Advantage participants misguided, without choices and with insufficient or the wrong coverage. Though AARP denies that they are working that closely with insurers and states that they act as advocates for their members, their financial records show different.

The funds they have received from life, auto and health insurance companies rose from $500 million per year in 2006-2007 to over $650 million in 2007-2008.
Over 60% of that money came from one of the nation’s largest insurance carriers, UnitedHealth Group, which AARP uses as the company they endorse for all things Medicare, Medigap and Medicare Advantage.

The unfortunate thing is it would be easy- according to these numbers – to accuse AARP of being biased, too often to the detriment of their loyal and unsuspecting consumers. However; AARP says that this is not so.

There is no way for those of us who are laymen to know the actual details or the bottom line truth. We can only tell individuals – especially seniors – to make comparisons and do some research with other companies besides UnitedHealth Group/AARP. There are other companies out there and it is important that you find the best plan at the best price that fits your circumstances.