'Shameful': AARP's partnership with healthcare giant faces backlash amid recent controversies

A partnership between AARP, the top interest group in the United States dedicated to the plight of seniors, is facing growing scrutiny over its partnership with UnitedHealthcare as the healthcare giant faces a growing number of controversies.

"AARP now makes over a billion dollars a year in corporate royalties, more than triple what they make in membership dues," American Commitment President Phil Kerpen told Fox News Digital. 

"The vast majority of those royalties come from the country’s largest insurance company, UnitedHealthGroup, via a skim of 5% of the monthly premiums in the AARP-branded UnitedHealth insurance products.  AARP’s lobbying work always advances the interests of UnitedHealth rather than seniors.  Seniors, for instance, overwhelmingly opposed the Inflation Reduction Act, but UnitedHealth loved its price controls and supersized Obamacare subsidies, so AARP went all out for it."

AARP began a partnership with UnitedHealth in 1997 where AARP offers its nearly 38 million members UnitedHealth Medicare-related products, with AARP branding in what Forbes reported amounted to a "marketing coup."

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The partnership has drawn criticism from some, including the American Prospect, who raised questions about the partnership in a December post written by journalist Robert Kuttner. 

"For 27 years, UnitedHealth has been the co-branded choice of AARP. If you are looking for a supplemental policy to conventional Medicare, or a Medicare Advantage product, or a Medicare drug insurance policy, AARP will steer you to UnitedHealth," Kuttner wrote. "And only to UnitedHealth."

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"The reason is shameful. UnitedHealth kicks back 4.95 percent of premium income from AARP subscribers to AARP. And the numbers are staggering. According to AARP’s audited financial report, AARP made $289.3 million from member dues, but $1.134 billion from kickbacks from insurers, of which the lion’s share, $905 million, was from health insurers. AARP delicately refers to these as royalties."

AARP lobbied enthusiastically for the Inflation Reduction Act, Daily Caller first reported, spending more than $60 million advocating for a provision allowing Medicare to impose price caps that were used in part to extend ACA subsidies to insurance companies, including UnitedHealthcare.

UnitedHealthcare has faced increased scrutiny in recent months after it was reported that the company dismissed about one in every three claims in 2023, the most of any major insurer and twice the industry average of 16%.

The Trump administration recently launched an investigation into UnitedHealthcare’s bill practice, Wall Street Journal reported.

In response to the growing criticisms, many of which have been exacerbated by critics in the wake of the murder of UnitedHealthcare CEO Brian Thompson, the New York Post reported that the company hired a top defamation firm to combat social media posts it deemed to be false.

UnitedHealthcare and AARP said in 2017 that their partnership would run through at least 2025. It is unclear if any agreement has been made to extend that partnership in the future.

In a statement to Fox News Digital, AARP Senior Vice President of Campaigns John Hishta said, "American Commitment, a group aligned with PhRMA, puts out a lot of nonsense and smoke and mirrors because they’re desperate. The 2022 prescription drug law that let Medicare lower prescription drug costs left PhRMA flat-footed."

"We’ve been hearing for decades from members who are struggling to afford medicine, and we’ve delivered to make it more affordable fighting for the 2022 prescription drug law and dropping by Congress’s doorstep repeatedly to push other solutions like PBM reform. PhRMA has a lot of lobbyists and a lot of money, but we have a lot of people – tens of millions of Members. We hear from our members, and others in the 50-plus, and they tell us they’re satisfied and we should keep standing up for them."

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UnitedHealthcare pointed Fox News Digital to a 2024 press release announcing that the two companies "have updated their agreement, which focuses on improving the health and well-being of Americans 50 and older, including the most popular Medicare products among older Americans."

"Through the updated agreement, UnitedHealthcare will continue to offer for the foreseeable future AARP-branded Medicare-related offerings, including Medicare Advantage, Medicare Part D and supplemental benefits, while assuming fiduciary responsibilities related to supplemental products. The extended agreement advances considerations for the enduring co-branding relationship, furthering both organizations’ core mission of serving older Americans."

Tim Noel, Chief Executive Officer, UnitedHealthcare Medicare & Retirement, says in the release, "We are proud to offer a variety of Medicare plans co-branded with AARP and look forward to our ongoing collaboration for years to come."

"We have long shared a commitment to help ensure high quality health care is accessible and affordable for the people we serve."