Is AARP actually a conflict of interest with Health Insurance

[owlbcnu]

While AARP Is strongly and with good zeal calling out these Pharmaceutical companies for ripping off Seniors for their staggering prices on life saving drugs. 

   I have another issue. Why is AARP pushing for United HealthCare. I recently wanted to switch from my existing secondary healthcare provider to AARP and lo and behold hey wanted to triple my costs. Please excuse me if I’m wrong but i have always been told that AARP backs their Senior Citizens. So if that is the case then IMHO, AARP should NOT be in the business of Healthcare Unless they’re here to lower the prices of our insurance. Hence as i said before, this is without a doubt ‘A Conflict of Interest’.

[kholoussy]

Does AARP shop around for the best insurance products for its members?  I doubt it.  UHC has been the only company recommended for many years.  Hartford for auto and home. Delta for dental care which is really an insurance look alike product.  I used all three.  I dropped out of the Hartford a couple of years ago for better and cheaper coverage.  Will not renew my Dental plan.  

While insured by these companies, I never recieved a feed back request from AARP.  So how do they know that the membership is happy with their recommendations?

[GailL1]

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@kholoussy wrote:

Does AARP shop around for the best insurance products for its members?  I doubt it.  UHC has been the only company recommended for many years.  Hartford for auto and home. Delta for dental care which is really an insurance look alike product.  I used all three.  I dropped out of the Hartford a couple of years ago for better and cheaper coverage.  Will not renew my Dental plan.  

While insured by these companies, I never recieved a feed back request from AARP.  So how do they know that the membership is happy with their recommendations?

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The profit-making arm of AARP - AARP SERVICES, INC. - is responsible for evaluating, picking and renewing those benefit companies - some of them are actually branded (AARP gets royalties for their use of AARP's Intellectual Property and logo via a licensing agreement) -

You can find all about it here (remember THEY market to companies):

AARP Services, Inc. - Our Purpose

If you have a problem with one of these services, you do what members do and contact the membership organization ( AARP.org ) - I believe they have a special contact for this sort of thing (see the bottom of the AARP.org Home Page).

[GailL1]

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@owlbcnu wrote:

1.  Why is AARP pushing for United HealthCare.

2.  I recently wanted to switch from my existing secondary healthcare provider to AARP and lo and behold hey wanted to triple my costs.

3.  Please excuse me if I’m wrong but i have always been told that AARP backs their Senior Citizens.

4.  So if that is the case then IMHO, AARP should NOT be in the business of Healthcare Unless they’re here to lower the prices of our insurance. Hence as i said before, this is without a doubt ‘A Conflict of Interest’.

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I broke down your comments in a numerical fashion so that I could answer each -  I don't see where there is a conflict of interest - after understanding this more fully - do you?

1.  UHC buys the rights to use the AARP name; AARP gets royalty income for this arrangement  -  then they become an AARP branded service.

AARP Services, Inc., the profit making arm of AARP, handles this - see page 5 of this AARP publication:

AARP Services, INC. 2015 AARP Services, Inc. Annual report

2.  Are you talking about a Medicare Supplemental policy ?  Better know as Medigap -

If that is what you are talking about - a Medicare Supplemental Policy (Medigap) - then you need to understand this "secondary" insurance - how it works, what it does, when you can buy one, when you can switch, with underwriting and when you can't and how it is priced -  Just follow this Medicare.gov link along on all the Medigap subjects (listed in a box on the left side of the screen).

Medicare.gov - What's Medicare Supplement Insurance (Medigap) ?

If you have more questions, you can ask more questions.

3.  I do not know what you mean by "AARP backs their Senior Citizens".   AARP has a Foundation Arm which works on a lot of social issues for seniors - housing, food insecurity, discimination, other legal issues, as well as healthcare issues like the availability of services, the cost of services, etc.

They support or Not certain pieces of legislation based on their research as to how it migh help or harm seniors.

The membership organization of AARP is open to those age 50 and over - so not just seniors.

The Mission of this AARP membership organization is to empower people to choose how they live as they age.

AARP.org - Mission, Vision, Advocacy

They educate,

They help to form public policy

They try to find services, via AARP Services, Inc., that benefit their membership in Products, services and discount benefits 

4.  AARP is NOT an insurance company - there are disclosures in all the policies that put that in writing.  I pulled this from the ad at the top of the main page.

AARP endorses the AARP Medicare Supplement Insurance Plans, insured by UnitedHealthcare Insurance Company. UnitedHealthcare Insurance Company pays royalty fees to AARP for the use of its intellectual property. These fees are used for the general purposes of AARP. AARP and its affiliates are not insurers. AARP does not employ or endorse agents, brokers or producers.

You must be an AARP member to enroll in an AARP Medicare Supplement Plan.

Insured by UnitedHealthcare Insurance Company, Horsham, PA (UnitedHealthcare Insurance Company of New York, Islandia, NY for New York residents). Policy Form No. GRP 79171 GPS-1 (G-36000-4).

In some states plans may be available to persons under age 65 who are eligible for Medicare by reason of disability or End-Stage Renal Disease.

Not connected with or endorsed by the U.S. Government or the federal Medicare Program.

This is a solicitation of insurance. A licensed insurance agent/producer may contact you.

THESE PLANS HAVE ELIGIBILITY REQUIREMENTS, EXCLUSIONS AND LIMITATIONS. FOR COSTS AND COMPLETE DETAILS (INCLUDING OUTLINES OF COVERAGE), CALL A LICENSED INSURANCE AGENT/PRODUCER AT 1-888-865-1605 TTY 711.

[somarco]

@GailL1 UHC buys the rights to use the AARP name; AARP gets royalty income for this arrangement 

Technically, UHC does not "buy" the rights, as in having actually ownership of the brand.

McDonald's franchisees don't buy the name McDonald's but they have an agreement to brand their restaurants under the trademarked name as long as they adhere to the franchise terms.

As you noted, when an individual wants to change Medigap plans, in most cases, underwriting is required. Beyond that, it a person wants to change plans and/or carriers they should be a careful shopper and not just assume that a co-branded product is inherently less expensive than comparable products from other carriers.

Consumers often assume the product is actually offered (and insured) by AARP because of branding. Part D plans have been marketed for a few years now with the AARP "brand" appearing in the name.

Likewise, Medicare supplement plans also are marketed as "AARP Medicare Supplement Plans insured by United Healthcare"

Finally, neither AARP or UHC are in the health care business.

Rather, they are in the business of marketing (AARP) and insuring (UHC) the COST of health care.

[GailL1]

@somarco 

Sorry you did not like my wording of "UHC buys the rights to use the AARP name; AARP gets royalty income for this arrangement - then they become an AARP branded service."

"Buy" meaning that UnitedHealthcare Insurance Company pays royalty fees to AARP for the use of its intellectual property.   The Intellectual property being the AARP name and perhaps the insignia (TM) - the branding.

You can bet that each of those McDonald's franchisees does pay a royalty fee to the main company in some manner, as you said probably within their franchise agreement.

I did not say that AARP or UHC were in the healthcare business - I quoted the disclaimer -

AARP and its affiliates are not insurers. AARP does not employ or endorse agents, brokers or producers.

Yes, consumers are often confused by this manner of marketing - but in a way, isn't that the purpose unless you dig into it enough to understand the arrangement.