A common point of confusion for many consumers is the belief that AARP is an insurance company. In reality, AARP is a nonprofit organization that advocates for individuals aged 50 and older. It does not issue insurance policies itself. Instead, it lends its well-known and trusted brand name to carefully vetted products offered by third-party companies. When you see an "AARP plan," you are looking at a product from a partner company that is endorsed by AARP.
The most prominent partner for health-related plans is UnitedHealthcare. This partnership is why you will frequently see the names AARP and UnitedHealthcare used together when discussing Medicare options. To access any of these AARP-branded plans, you must first become an AARP member.
A Deep Dive into AARP Health Insurance Plans
The core of AARP's plan offerings revolves around supplementing and replacing government-provided Medicare. These plans are designed to help cover costs that Original Medicare (Part A and Part B) does not.
AARP Medicare Supplement Insurance Plans (Medigap)
Offered by UnitedHealthcare, these plans are designed to fill the "gaps" in Original Medicare. These gaps include deductibles, copayments, and coinsurance. Key features include:
- Standardized Benefits: Medigap plans are standardized by the federal government. This means that a Plan G from one company offers the exact same basic benefits as a Plan G from another.
- Freedom of Choice: With a Medigap plan, you can see any doctor or visit any hospital in the U.S. that accepts Medicare patients. You do not need to worry about provider networks.
- Predictable Costs: After paying your monthly premium, your out-of-pocket costs for Medicare-approved services are often minimal or zero, depending on the plan you choose.
AARP Medicare Advantage (Part C) Plans
Also offered through UnitedHealthcare, AARP Medicare Advantage plans are an alternative way to receive your Medicare benefits. These plans bundle Original Medicare (Part A and B) and often include Prescription Drug (Part D) coverage into a single plan. Main characteristics are:
- Network-Based: Most Medicare Advantage plans operate with a network of doctors and hospitals, such as an HMO (Health Maintenance Organization) or PPO (Preferred Provider Organization).
- Extra Benefits: These plans often include benefits not covered by Original Medicare, such as routine dental, vision, and hearing care, as well as fitness memberships (like SilverSneakers).
- Cost Structure: You'll typically have lower monthly premiums compared to Medigap plans but will pay copayments or coinsurance for services as you use them.
AARP Prescription Drug (Part D) Plans
For those who stick with Original Medicare, a standalone Prescription Drug Plan is essential for managing medication costs. AARP offers several Part D plans through UnitedHealthcare, each with different formularies (lists of covered drugs) and cost structures to meet varying needs.
Comparison: AARP Medicare Advantage vs. Medigap
Choosing between these two primary options is a critical decision for Medicare beneficiaries. The right choice depends on your budget, health needs, and desire for flexibility.
| Feature | AARP Medicare Advantage (Part C) | AARP Medicare Supplement (Medigap) |
|---|---|---|
| Provider Choice | Generally restricted to a network (HMO or PPO) | Can see any doctor/hospital in the U.S. that accepts Medicare. |
| Monthly Premiums | Often have low or even $0 monthly premiums. | Higher monthly premiums. |
| Out-of-Pocket Costs | Pay copays/coinsurance as you use services. Has an annual limit. | Few to no out-of-pocket costs for Medicare-approved services. |
| Prescription Drugs | Usually included (MAPD plans). | Not included. Requires a separate Part D plan. |
| Extra Benefits | Often includes dental, vision, hearing, and fitness programs. | Does not include extra benefits. |
| Referrals | May require referrals to see specialists (especially in HMOs). | No referrals needed to see specialists. |
Beyond Health Insurance: Other AARP-Branded Plans
AARP's portfolio extends well beyond Medicare. Members can access a variety of other insurance and financial products:
- Dental Insurance: Offered through Delta Dental, these plans provide coverage for routine checkups, cleanings, fillings, and more significant procedures.
- Vision Insurance: Through EyeMed, members can get plans that help cover the cost of eye exams, glasses, and contact lenses.
- Life Insurance: AARP-endorsed life insurance policies are issued by New York Life and include both term and whole life options, some of which require no medical exam.
- Home & Auto Insurance: The AARP Auto & Home Insurance Program from The Hartford offers members specialized coverage and discounts for their vehicles and property.
Who is Eligible for an AARP Plan?
Eligibility is a two-step process:
- AARP Membership: First and foremost, you must be an AARP member. Membership is available to anyone age 50 or over for a small annual fee.
- Plan-Specific Requirements: Each plan has its own eligibility criteria. For Medicare-related plans, you must be enrolled in or eligible for Original Medicare (typically by being 65 or older, or younger with certain disabilities).
Conclusion: Is an AARP Plan Worth It?
Determining the value of an AARP plan requires a personal assessment. The brand offers trust and a wide array of options, which can simplify the selection process for many. The included member discounts on travel, dining, and other services add to the value proposition. However, it's crucial to remember that AARP-endorsed plans are not always the most cost-effective option in every market. The best approach is to use the AARP offerings as a strong baseline in your comparison shopping. You should always weigh them against other available policies to ensure you are getting the best coverage for your specific health and financial situation. For official government information, you can always visit the official Medicare website.
