Resolve has shifted from relying on taxes from people and towards profits from its strong connection with UnitedHealth Group, the world’s largest health employer, according to a report , from American Commitment.
The American Commitment , report, titled” How AARP’s Profits Harm Patients — And Violate Its Principles” , , found that AARP has increased its revenue through its tight relationship with UnitedHealth by embedding “royalty fees” within the premiums of those who purchase Medicare supplemental policies, or” Medigap” insurance. These Medigap and Medicare Advantage strategies, which have grown “more than 20 years right,” are licensed by United Health.
Since 2007, the American Association of Retired Persons ( AARP ), a nonprofit, has received roughly$ 9 billion in tax- free revenue from United Health.
American Commitment’s study, which was conducted by the Juniper Research Group, found that AARP’s income has progressively come from its enterprise fascination over dues from people. This includes:
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Since 2007, AARP has reportedly received$ 9 billion in tax-free profits from United Health.
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AARP revenue in 2022 derived from UnitedHealth alone is estimated to be around$ 862 million.
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In 2022, AARP received more than$ 1.1 billion in total corporate profits, which is three times the amount paid by its users in membership dues, and accounts for nearly 60 % of all annual income.
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AARP member dues revenue fell by over$ 5 million in 2022, yet royalty revenues grew over$ 47 million.”
Although American elders seem to have a positive perspective of AARP, some have misgivings about the nonprofit’s perform.
According to American Commitment, 75 % of those surveyed polled thought the AARP’s “royalty fee”” creates a conflict of interest” that may affect its ability to represent elderly ‘ interests. More than 62 percent of the agency’s seniors think that AARP’s 4.95 percentage fee amounts to an unneeded” bad price. According to AARP members, “more than 87 percent of the organization should not have preferred to use Medicare income to bank” related expenses and taxes breaks.”
While AARP has pushed Democrat policies to this claimed conflict of interest, AARP CEO Jo Ann Jenkins received nearly$ 1.6 million in salary, benefits, and other compensation. This is not limited to its CEO, of the 14 different AARP officials on the non- income 2022 Form 990, all received more than$ 500, 000 in payment.
A nearby preponderance, or 48 percent, said that learning about AARP’s place on the Inflation Reduction Act and its connection with UnitedHealth makes them” less likely to believe AARP]is ] acting in the best interest of older Americans.”
The report discovers that when the volunteer for retired American advocates for guidelines on Capitol Hill, the close business relationship between AARP and UnitedHealth creates a wicked opportunity.
AARP also actively supported the$ 700 billion Inflation Reduction Act’s healthcare reforms, which took$ 250 billion Medicare” savings” and shifted to unrelated spending, which the report noted is a common Democrat spending tactic. Additionally, according to the report, polls reveal that roughly 90 percent of American seniors are against this decision.
The AARP also endorsed the Inflation Reduction Act’s “policies” to “negotiated” the price of prescription drugs, which American Commitment claims will reduce innovation and prevent new drug discoveries. For instance, Biotech company Seagen canceled research into a different bladder cancer treatment option because it would” no longer generate any revenue.”
American Commitment claimed that the billions of dollars that UnitedHealth receives from UnitedHealth compromise AARP’s policy positions. These include royalty fees imposed on those who purchase Medicare supplemental policies, or Medigap insurance, and licensing Medigap and Medicare Advantage coverage.
According to the American Commitment report:
AARP’s financial conflicts have prompted the organization to abandon its principles on numerous occasions, pursuing financial gain for itself and its partners over the organization’s stated mission and policy objectives—and its members. It’s unclear whether they are speaking for their business interests or the seniors they are supposed to represent, as an analyst at the Committee for a Responsible Federal Budget noted. ”   ,]Emphasis added]
The organization’s conduct should give Congress justification to continue its own independent investigations by further investigating the unsavory alliance between AARP and United Health, according to the report.
The way AARP actually operates, in stark contrast to its ongoing efforts to portray itself as an advocacy group for older Americans, is the subject of this report, according to Phil Kerpen, president of American Commitment, in a statement.
AARP is frequently aggressive and visible in the areas where legislation like the IRA benefits large insurers like United Health. However, AARP is largely silent on PBM reform or addressing premium increases and high out-of-pocket expenses, billions in Medicare overcharges or patient care denials.
For Breitbart News, Sean Moran covers policy reporting. Follow him on Twitter , @SeanMoran3.
