AARP, formerly the
American Association of Retired Persons, is the United States-based
non-governmental organizationA non-governmental organization is a legally constituted organization created by natural or legal persons that operates independently from any government. The term originated from the United Nations , and is normally used to refer to organizations that do not form part of the government and are...
and interest group, founded in 1958 by Ethel Percy Andrus, PhD, a retired educator from California, and based in
Washington, D.C.Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
According to its mission statement, it is "a nonprofit, nonpartisan membership organization for people age 50 and over ... dedicated to enhancing quality of life for all as we age," which "provides a wide range of unique benefits, special products, and services for our members."
AARP operates as a
non-profitNonprofit organization is neither a legal nor technical definition but generally refers to an organization that uses surplus revenues to achieve its goals, rather than distributing them as profit or dividends...
advocate for its members and as one of the most powerful
lobbyingLobbying is the act of attempting to influence decisions made by officials in the government, most often legislators or members of regulatory agencies. Lobbying is done by various people or groups, from private-sector individuals or corporations, fellow legislators or government officials, or...
groups in the United States. AARP has two affiliated organizations: AARP Services Inc. which is managed wholly for profit, and the AARP Foundation, which operates on a non-profit basis.
AARP Services Inc. offers: Medicare supplemental health insurance, discounts on prescription drugs and consumer goods, entertainment and travel packages, long-term care insurance and automobile, home and life insurance. It provides quality control over the products and services made available by AARP-endorsed providers. According to AARP's 2008 Consolidated financials, it was paid $652,000,000 in royalties from insurance companies that sold products referred by AARP. AARP also received an additional $120,000,000 for the ads placed in its publications.
The AARP Foundation runs programs on: free tax preparation and counseling, work training for older people of low income, training of volunteers on matters concerning the elderly, crime prevention and safe driving. Its vision is "a country that is free of poverty where no older person feels vulnerable."
AARP claims over 40 million members, making it one of the largest membership organizations in the United States.
History
Dr.
Ethel Percy AndrusEthel Percy Andrus was a long-time educator and the first woman high school principal in California. She was also the founder of AARP in 1958. In 1995 she was designated a Women's History Month Honoree by the National Women's History Project.-Life:She earned a bachelor of philosophy Ethel Percy...
founded AARP in 1958. AARP evolved from the National Retired Teachers Association (NRTA), which Andrus had established in 1947 to promote her philosophy of productive aging, and in response to the need of health insurance for retired teachers. After ten years, Andrus opened the organization to all Americans over 50, creating AARP. Today, NRTA is a division within AARP. Honors to Dr. Andrus include induction into the Women's Hall of Fame and, more recently, a medallion placed on the Points of Light Institute's "Extra Mile Pathway" in downtown Washington, D.C. According to
Andy Rooney, AARP was established by Leonard Davis, founder of the Colonia Penn Group insurance companies, after he met Ethel Percy Andrus.
According to critics, until the 1980s AARP was controlled by Mr. Davis, who promoted its image as a non-profit advocate of retirees in order to sell insurance to members. After a lengthy competitive bidding process, AARP shifted the insurance contracts made available to members to Prudential in 1980. In the 1990s, the
United States SenateThe United States Senate is the upper house of the bicameral legislature of the United States, and together with the United States House of Representatives comprises the United States Congress. The composition and powers of the Senate are established in Article One of the U.S. Constitution. Each...
investigated AARP's non-profit status, with Republican Senator
Alan SimpsonAlan Kooi Simpson is an American politician who served from 1979 to 1997 as a United States Senator from Wyoming as a member of the Republican Party. His father, Milward L. Simpson, was also a member of the U.S...
, then chairman of the
United States Senate Finance Subcommittee on Social Security, Pensions, and Family PolicyThe Senate Finance Subcommittee on Social Security, Pensions, and Family Policy is one of the six subcommittees within the Senate Committee on Finance-Members, 112th Congress:...
, questioning the organization's tax-exempt status in
congressional hearingCongressional hearings are the principal formal method by which committees collect and analyze information in the early stages of legislative policymaking. Whether confirmation hearings — a procedure unique to the Senate — legislative, oversight, investigative, or a combination of these, all...
s. According to
Charles BlahousCharles Paul "Chuck" Blahous III is a research fellow at Stanford University's Hoover Institution, specializing in domestic economic policy, a U.S. public trustee for the Social Security and Medicare programs, and a former Special Assistant to US President George W...
, the investigations did not reveal sufficient evidence to change the organization's status, though in a interview years later by the
Des Moines RegisterThe Des Moines Register is the daily morning newspaper of Des Moines, Iowa, in the United States. A separate edition of the Register is sold throughout much of Iowa.-History:...
, Senator Simpson remained "troubled by AARP's practices", calling AARP "the biggest marketing operation in America and money-maker" and an organization whose practices are "the greatest abuse of American generosity I witnessed in my time in the U.S. Senate."
The organization was originally named the
American Association of Retired Persons, but in 1999 it officially changed its name to "AARP" to reflect that its focus was no longer American retirees. AARP no longer requires that members be retired, just that they be over 50 years of age, and does not extend full membership privileges to applicants who are retired but not over 50.
Activities
AARP is widely known for addressing issues affecting older Americans through a multitude of initiatives, including
lobbyingLobbying is the act of attempting to influence decisions made by officials in the government, most often legislators or members of regulatory agencies. Lobbying is done by various people or groups, from private-sector individuals or corporations, fellow legislators or government officials, or...
efforts at the state and national governmental level, an activity permitted by its 501(c)(4) status. The organization claims that it is non-partisan and does not support, oppose or give money to any candidates or political parties. AARP's total revenue for 2006 was approximately $1 billion and it spent $23 million on lobbying. AARP also provides extensive consumer information, volunteer opportunities, and events including the annual National Event & Expo (in Los Angeles in 2011). One of AARP's goals is to reduce hunger among seniors through the Drive to End Hunger. AARP and AARP Foundation have a new relationship with
NASCARThe National Association for Stock Car Auto Racing is a family-owned and -operated business venture that sanctions and governs multiple auto racing sports events. It was founded by Bill France Sr. in 1947–48. As of 2009, the CEO for the company is Brian France, grandson of the late Bill France Sr...
driver
Jeff GordonJeffery Michael "Jeff" Gordon is a professional NASCAR driver. He is the driver of the #24 Drive to End Hunger/DuPont/Pepsi Chevrolet Impala. He is a four-time Sprint Cup Series champion and a three-time Daytona 500 winner. He is third on the all-time wins list, with 85 career wins, and has the...
and
Hendrick MotorsportsHendrick Motorsports , originally named All Star Racing, is a current American auto racing team created in 1984 by Rick Hendrick. The team currently competes in the NASCAR Sprint Cup Series with Chevrolet Impalas...
to increase awareness of hunger in America with the No. 24 Drive to End Hunger race car and related food drives.
AARP Services, Inc., founded in 1999, is a wholly owned taxable subsidiary of AARP. AARP Services manages the wide range of products and services that are offered as benefits to AARP’s 40 million members. The offers span health products, travel and leisure products, and life event services. Specific products include Medicare supplemental insurance; member discounts on rental cars, cruises, vacation packages and lodging; special offers on technology and gifts; pharmacy services; legal services; and long-term care insurance. AARP Services founded AARP Financial Incorporated, a subsidiary that manages AARP-endorsed financial products including AARP Funds. In a filing with the Securities and Exchange Commission in June 2010, AARP Financial announced the discontinuation of AARP Funds AARP Services develops new products, manages and markets products and services, and creates and maintains partnership and sponsorship relationships.
The AARP Foundation is AARP’s affiliated charity. Foundation programs provide security, protection and empowerment for older persons in need. Low-income older workers receive the job training and placement they need to re-join the workforce. Free tax preparation is provided for low- and moderate-income individuals, with special attention to those 60 and older. The Foundation’s litigation staff protects the legal rights of older Americans in critical health, long-term care, consumer and employment situations. Additional programs provide information, education and services to ensure that people over 50 lead lives of independence, dignity and purpose. Foundation programs are funded by grants, tax-deductible contributions and AARP.
The organization also publishes
AARP The MagazineAARP The Magazine is a bi-monthly magazine published by AARP, which focuses on aging issues. Established in 1958, it was known until 2002 as Modern Maturity. The editor is Nancy Perry Graham ; the managing editor is John Stoltenberg...
(known until 2002 as
Modern Maturity), a magazine focusing on aging issues. Established in 1958, the magazine, distributed bi-monthly, is sent to every AARP member. AARP also publishes the
AARP Bulletin. AARP The Magazine and the AARP Bulletin are by far the two magazines with the highest circulation in the United States. AARP also produces AARP VIVA, a quarterly publication with every article in Spanish and English; the online Live & Learn; and has a books division.
The organization also produces radio and television programs. Prime Time Radio, hosted by veteran broadcaster Mike Cuthbert, is a one-hour weekly interview program that focuses on the wide-ranging interests and concerns of Americans 40 and older. The program is heard on radio stations across the country as well as on the Prime Time Radio web site. Prime Time Focus, hosted by Alyne Ellis, is a 90-second daily feature with a five-minute weekend edition heard on more than 500 stations. Movies for Grownups, a weekly 2-minute program hosted by AARP the Magazine Entertainment Editor Bill Newcott, is heard on stations nationwide and online at the radioprimetime website. Recent guests have included Julie Andrews, John Cleese, Ron Howard, Alfre Woodard, and Helen Hunt. The Movies for Grownups Awards (www.moviesforgrownups.org) are presented each February in Hollywood. My Generation, hosted by Leeza Gibbons, is AARPs lifestyle show featuring nationally known experts covering issues from health and money to relationships and volunteering.
In 1979, AARP introduced the nation’s first-ever driver safety course geared towards older adults. The AARP Driver Safety Program, which can be completed in a classroom setting or online, teaches defensive driving techniques and provides “added information on age-related cognitive and physical changes that affect driving.” The course is instructed and promoted by volunteers throughout the US.
Health care
AARP has been active in health care policy debates since c. 1960 and its recent engagement is a reflection of this long-standing involvement.
AARP's public stances influenced the
United States CongressThe United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
' passage of the
Medicare Prescription Drug, Improvement, and Modernization ActThe Medicare Prescription Drug, Improvement, and Modernization Act is a federal law of the United States, enacted in 2003. It produced the largest overhaul of Medicare in the public health program's 38-year history.The MMA was signed by President George W...
, which authorized the creation of
Medicare Part DMedicare Part D is a federal program to subsidize the costs of prescription drugs for Medicare beneficiaries in the United States. It was enacted as part of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 and went into effect on January 1, 2006.- Eligibility and...
, in 2003, and also influenced the Congress by resisting radical changes to
Social SecurityIn the United States, Social Security refers to the federal Old-Age, Survivors, and Disability Insurance program.The original Social Security Act and the current version of the Act, as amended encompass several social welfare and social insurance programs...
in 2005. AARP also addressed health care issues in their campaign targeting the 2008 elections with Divided We Fail.
Divided We Fail
In early 2007 AARP launched "Divided We Fail," designed to address health care and long-term financial security. The initiative was launched with
Business RoundtableThe Business Roundtable is a politically conservative group of chief executive officers of major U.S. corporations formed to promote pro-business public policy.-History:...
and the
Service Employees International UnionService Employees International Union is a labor union representing about 1.8 million workers in over 100 occupations in the United States , and Canada...
, and encompasses advertising in national outlets and in the primary states, online activities, and traditional grassroots work, in order to engage the public, business and elected officials in the debate, and to encourage public leaders to offer solutions, according to the AARP. Nancy LeaMond, executive officer for social impact, said, "We want to really get to these candidates and ask for action, answers and accountability on these questions."
In November 2007, the
National Federation of Independent BusinessThe National Federation of Independent Business is a lobbying organization with its headquarters in Nashville, Tennessee and offices in Washington, D.C. USA, and in all 50 state capitals...
(NFIB) joined the Divided We Fail leadership.
The initiative used an "elephonkey" mixed animal as its symbol, with the head and forelegs of the
RepublicanThe Republican Party is one of the two major contemporary political parties in the United States, along with the Democratic Party. Founded by anti-slavery expansion activists in 1854, it is often called the GOP . The party's platform generally reflects American conservatism in the U.S...
elephantElephants are large land mammals in two extant genera of the family Elephantidae: Elephas and Loxodonta, with the third genus Mammuthus extinct...
and the ears, hindquarters, and tail of the kicking
DemocraticThe Democratic Party is one of two major contemporary political parties in the United States, along with the Republican Party. The party's socially liberal and progressive platform is largely considered center-left in the U.S. political spectrum. The party has the lengthiest record of continuous...
donkeyThe donkey or ass, Equus africanus asinus, is a domesticated member of the Equidae or horse family. The wild ancestor of the donkey is the African Wild Ass, E...
. "Champ" quickly became a recognizable symbol of the Divided We Fail initiative, fostered in part by television commercials that ran across the country. In addition, Divided We Fail Florida incorporated the initiative's mascot into an interactive educational vehicle, dubbed the "Champmobile," which traveled across the state and throughout the United States encouraging voters to "Let your voice be heard!"
Future Champions
In February 2007, AARP announced the launch of a new advertising campaign designed to address issues that will impact future generations and showcase the AARP brand. The campaign, called “Future Champions,” features children talking about the state of health care and financial security. The multigenerational focus is designed to reinforce the AARP's Divided We Fail coalition.
Health insurance
Approximately seven million people have AARP branded health insurance, including drug coverage and
MedigapMedigap refers to various private supplemental health insurance plans sold to Medicare beneficiaries in the United States that provide coverage for medical expenses not or only partially covered by Medicare...
, as of April 2007 and AARP earns more income from selling insurance to members than it does from membership dues. In 2008, AARP plans to begin offering several new health insurance products: An HMO for
MedicareMedicare is a social insurance program administered by the United States government, providing health insurance coverage to people who are aged 65 and over; to those who are under 65 and are permanently physically disabled or who have a congenital physical disability; or to those who meet other...
recipients, in partnership with
UnitedHealth GroupUnitedHealth Group Incorporated is a diversified health and "well-being" company. Headquartered in Minnetonka, Minnesota, UnitedHealth Group offers a spectrum of products and services through two operating businesses: United Healthcare and Optum. Through its family of subsidiaries and divisions,...
; and a
PPOIn health insurance in the United States, a preferred provider organization is a managed care organization of medical doctors, hospitals, and other health care providers who have covenanted with an insurer or a third-party administrator to provide health care at reduced...
and "a high-deductible insurance policy that could be used with a health savings account" to people aged 50–64, in partnership with
AetnaAetna, Inc. is an American health insurance company, providing a range of traditional and consumer directed health care insurance products and related services, including medical, pharmaceutical, dental, behavioral health, group life, long-term care, and disability plans, and medical management...
. AARP will likely become the largest source of health insurance for Medicare recipients, and AARP estimates the new products will increase its health insurance customers to 14 million by 2014.
AARP is not an insurer and does not pay insurance claims. Instead, AARP allows its name to be used by insurance companies in the sale of insurance products, for which it is paid a commission like an insurance agent.
Senator Charles E. Grassley (R-Iowa), senior Republican on the Senate Finance Committee, said in 2008 that the "limited benefit" insurance plans offered by AARP through UnitedHealth provided inadequate coverage and were marketed deceptively. One plan offered $5,000 for surgery that may cost two or three times that amount.
AARP does a "thriving business" in marketing branded
MedigapMedigap refers to various private supplemental health insurance plans sold to Medicare beneficiaries in the United States that provide coverage for medical expenses not or only partially covered by Medicare...
policies. As of October 2009, Medical care reform contained a proposal to trim an associated program Medicare Advantage, which was expected to increase demand for Medigap policies. However, as cited above, AARP also brands a Medicare Advantage plan (MedicareComplete), and would also be subject to cuts under health care reform.
Single payer
On the other hand, single-payer advocates have criticized AARP for not supporting the single-payer or public option during the health care debate. Single-payer advocates supported H.R. 676, proposed by Rep. John Conyers (D-MI). AARP released a statement explaining to its members why the organization was not supporting H.R. 676:
Starting over with a new, "single-payer" program will not eliminate the problems Medicare, Medicaid, and SCHIP currently face, such as the spiraling costs of procedures and prescription medications, as well as technological advances that are often not comprehensively tested to be proven safe or effective before marketing. H.R. 676 does not address the problem of increasing health-care costs. Rather, it allows costs to continue to grow, which will result in unaffordable coverage.
John Rother, AARP's former chief lobbyist, said the single-payer model would “disrupt the system that is currently in place” and “would require a very significant tax increase.” But Rother admitted that it would be possible to design a system that would avoid these problems and function well. AARP's priorities now are to protect the current programs and implement the Affordable Care Act. Rother said that any effort to promote single payer would be undercutting health reform. Rother said. “To go to a single-payer you do have to trust government. The climate we’re in right now is a very hostile climate for something like that.”
Rother also thought that an educational effort on the benefits of single payer would undercut the ACA. AARP has not published any material relating to single-payer health insurance on its website, in its several hundred page policy book, or through its Public Policy Institute.
Social Security
In June, 2011, AARP dropped its longstanding opposition to cutting Social Security benefits. In 2005 AARP led the effort to kill President George W. Bush's plan for partial privatization. AARP now has concluded that change is inevitable, and it wants to be at the table to try to minimize the pain. "The ship was sailing. I wanted to be at the wheel when that happens," said John Rother, AARP's policy chief and a prime mover for the new position. AARP declined to join a coalition of about 300 unions, women's groups and liberal advocacy organizations created to fight Social Security benefit cuts. "The coalition's role was to kind of anchor the left, and our role is going to be to actually get something done," said Rother.
Criticism
In an editorial column within the
Los Angeles Times, critic Dale Van Atta wrote that AARP does unauthorized lobbying for its membership, and lobbies against the best interests of its membership. Van Atta says that by lobbying for the Medicare Prescription Drug, Improvement, and Modernization Act, AARP leaders betrayed the membership.
According to an
Annenberg Public Policy CenterThe Annenberg Public Policy Center is a center for the study of public policy at the Annenberg School for Communication at the University of Pennsylvania. It has offices in Washington, D.C...
report,
critics have said AARP had a conflict of interest in supporting the Act, because AARP “derives income from the sale of health and life insurance policies,” by licensing its brand to insurance dealers such as
New York LifeThe New York Life Insurance Company is one of the largest mutual life-insurance companies in the United States, and one of the largest life insurers in the world, with about $287 billion in total assets under management, and more than $15 billion in surplus and AVR...
, and would benefit financially from passage of the legislation.
In 2004
BusinessWeekBloomberg Businessweek, commonly and formerly known as BusinessWeek, is a weekly business magazine published by Bloomberg L.P. It is currently headquartered in New York City.- History :...
said questions have arisen in the past about whether AARP's commercial interests may conflict with those of its membership, and characterizes many of the funds and insurance policies that AARP markets as providing considerably less benefit than seniors could get on their own.
Approximately 60,000 AARP members quit AARP between July 1 and August 18, 2009, in a controversy that arose over AARP's support for
U.S. health care reformThe health care reform debate in the United States has been a political issue for many years, focusing upon increasing coverage, decreasing the cost and social burden of healthcare, insurance reform, and the philosophy of its provision, funding, and government involvement...
. FOX News stated, "The Atlanta-based American Seniors Association, which is opposed to President Obama's health care plan, is trying to capitalize on growing public dissatisfaction with the AARP." AARP spokesman Drew Nannis responded that AARP loses about 300,000 members a month on average, and the controversial 60,000 of those that had left had specified leaving over the Health Care debate. Nannis also stated that the AARP gained 400,000 members and that 1.5 million members renewed their memberships within the same period of time.
The American Seniors Association is a for-profit organization operated by the American Seniors Association Holding Group, Inc (ASAHG, Inc).
See also
- AARP/Blue Zones Vitality Project
In January 2009, the City of Albert Lea, Minnesota began the AARP/Blue Zones Vitality Project. Sponsored by United Health Foundation and led by Dan Buettner, the author of The Blue Zone: Lessons for Living Longer From the People Who've Lived the Longest, the Vitality Project's goal was to add...
- Aging
- Elderly care
Elderly care or simply eldercare is the fulfillment of the special needs and requirements that are unique to senior citizens. This broad term encompasses such services as assisted living, adult day care, long term care, nursing homes, hospice care, and In-Home care.-Cultural and geographic...
- Geriatrics
Geriatrics is a sub-specialty of internal medicine and family medicine that focuses on health care of elderly people. It aims to promote health by preventing and treating diseases and disabilities in older adults. There is no set age at which patients may be under the care of a geriatrician, or...
- UnitedHealth Group
UnitedHealth Group Incorporated is a diversified health and "well-being" company. Headquartered in Minnetonka, Minnesota, UnitedHealth Group offers a spectrum of products and services through two operating businesses: United Healthcare and Optum. Through its family of subsidiaries and divisions,...
- Aetna
Aetna, Inc. is an American health insurance company, providing a range of traditional and consumer directed health care insurance products and related services, including medical, pharmaceutical, dental, behavioral health, group life, long-term care, and disability plans, and medical management...
- Association of Retired Americans (ARA)
Further reading
- Lynch, Frederick R. One Nation Under AARP: The Fight Over Medicare, Social Security, and America's Future (University of California Press; 2011) 288 pages;
- Morris, Charles R. The AARP: America's Most Powerful Lobby and the Clash of Generations (Crown, 1996). ISBN 0-8129-2753-2
External links
- AARP official website, with official history, financial reports, and mission statement
- AARP new membership website
- ASA official website
- Overview of AARP from Hoover's
Hoover's, Inc., a subsidiary of Dun & Bradstreet, is a business research company that has provided information on U.S. and foreign companies and industries since 1990. Since 1993, the company has made its information available on its website.-Operations:...
- A critical history of AARP by the competing organization, 60 Plus Association
The 60 Plus Association is an American conservative advocacy group founded in 1992 and based in Arlington, Virginia, that bills itself as the conservatives' alternative to the AARP, . Over the years, it has sought to privatize Social Security, end the federal estate tax, and strengthen gun rights...
- Report on AARP lobbying from OpenSecrets.org
The Center for Responsive Politics is a non-profit, nonpartisan research group based in Washington, D.C. that tracks money in politics and the effect of money and lobbying activity on elections and public policy and maintains a public online database of its information.Their database...
- Detailed history of recent AARP lobbying from the publication The American Prospect.