The Relationship Between AARP and Medicare
AARP, the American Association of Retired Persons, is an influential nonprofit advocacy group dedicated to the interests of people aged 50 and older. Despite its strong association with Medicare, it is not an insurance company. Instead, AARP has a long-standing, exclusive partnership with UnitedHealthcare, a private insurance company. Under this agreement, AARP endorses and licenses its brand name to UnitedHealthcare, which then sells a wide range of Medicare insurance products, including Medigap, Medicare Advantage, and Part D plans. AARP receives royalties from UnitedHealthcare for this branding partnership, which funds its advocacy and member programs.
For consumers, this means that any Medicare plan carrying the AARP name is actually a UnitedHealthcare product. To enroll in an AARP-branded plan, you must be an AARP member, though membership is open to individuals over 50. This relationship allows AARP to influence and advocate for its members' interests in the healthcare space while providing a vetted set of insurance options.
AARP's Medicare Plan Offerings Explained
Through its partnership with UnitedHealthcare, AARP offers three primary types of Medicare plans to supplement or replace Original Medicare (Parts A and B). The best choice depends on your specific health needs, budget, and preference for provider flexibility.
AARP Medicare Supplement (Medigap) Plans
Medigap plans are designed to help pay for the “gaps” in Original Medicare's coverage, such as deductibles, coinsurance, and copayments. AARP offers several standardized Medigap plans (e.g., Plans A, B, G, N) through UnitedHealthcare. All plans with the same letter designation offer the same basic benefits, regardless of the insurer, though premiums can vary.
Key features of AARP Medigap plans include:
- National coverage: You can visit any doctor or hospital in the U.S. that accepts Medicare, without network restrictions.
- No referrals needed: You can see specialists without a referral from a primary care provider.
- Guaranteed coverage (in some cases): During your initial Medigap Open Enrollment Period, you have guaranteed access to a plan, regardless of your health status.
- Standardized benefits: The coverage for each plan letter is consistent across most states.
It is important to note that you cannot have a Medigap plan and a Medicare Advantage plan at the same time.
AARP Medicare Advantage (Part C) Plans
Medicare Advantage plans are an alternative to Original Medicare, offered by private companies like UnitedHealthcare. These plans are required to cover all the same benefits as Original Medicare Part A and B, and most include additional benefits not covered by Original Medicare.
Benefits often associated with AARP Medicare Advantage plans include:
- Extra benefits for dental, vision, and hearing.
- Prescription drug coverage (often integrated as Part D).
- Wellness benefits, such as gym memberships or fitness programs.
- Annual out-of-pocket maximums to protect against high medical costs.
These plans typically operate with provider networks (HMOs or PPOs), which can restrict your choice of doctors or increase your costs for out-of-network care.
AARP Medicare Part D Prescription Drug Plans
For those who choose to stick with Original Medicare and a Medigap plan, AARP offers standalone Part D plans through UnitedHealthcare. These plans help cover the costs of prescription medications. A separate Part D plan is necessary as Medigap and Original Medicare do not cover most outpatient prescription drugs.
Comparison: Medigap vs. Medicare Advantage (Part C)
To help you decide between AARP's two main plan types, here is a comparison of key features.
| Feature | AARP Medicare Supplement (Medigap) | AARP Medicare Advantage (Part C) |
|---|---|---|
| Provider Networks | No network restrictions; see any doctor accepting Medicare. | Typically requires using in-network doctors and hospitals for the lowest cost. |
| Referrals | No referrals needed for specialists. | Referrals may be required for specialists, depending on the plan type. |
| Out-of-Pocket Costs | Lowers out-of-pocket costs by covering deductibles, coinsurance, and copayments. | Has copayments and coinsurance, but with an annual out-of-pocket spending limit. |
| Extra Benefits | Does not cover services like routine dental, vision, or hearing. | Often includes extra benefits like dental, vision, and hearing. |
| Prescription Drugs | Does not cover prescription drugs; requires a separate Part D plan. | Most plans include prescription drug coverage (Part D). |
| Monthly Premiums | Pay a separate premium for the Medigap plan and the Part B premium. | Still pay the Part B premium; may also pay an additional plan premium. |
AARP's Broader Role: Healthcare Advocacy
Beyond offering insurance products, AARP is a powerful voice in national healthcare policy. AARP actively lobbies Congress and state legislatures to advocate for the interests of seniors and to strengthen the Medicare program. Recent advocacy wins include fighting to lower prescription drug costs and supporting legislation that helps protect Medicare beneficiaries. AARP works to keep Medicare stable for current and future generations by promoting policies that address rising healthcare costs, waste, and fraud. For additional authoritative information on healthcare policy, visit KFF Health News.
Making an Informed Decision
Choosing the right Medicare coverage requires careful consideration of your health needs, financial situation, and provider preferences. For many, the choice is between the flexibility of Original Medicare with an AARP Medigap plan and the bundled benefits of an AARP Medicare Advantage plan. Factors like network access, additional benefits, and cost-sharing arrangements are all crucial to evaluate. Ultimately, AARP’s role is to provide a brand and a selection of plans through its insurance partner, UnitedHealthcare, alongside its ongoing advocacy for the senior community.
