{"id":2599793,"date":"2026-05-07T08:34:58","date_gmt":"2026-05-07T12:34:58","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/how-the-aarp-profits-from-seniors-economic-misery\/"},"modified":"2026-05-07T08:39:19","modified_gmt":"2026-05-07T12:39:19","slug":"how-the-aarp-profits-from-seniors-economic-misery","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/how-the-aarp-profits-from-seniors-economic-misery\/","title":{"rendered":"How The AARP Profits From Seniors&#8217; Economic Misery"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fhow-the-aarp-profits-from-seniors-economic-misery%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2599793&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Health care costs are rising, and the article argues that seniors are hit especially hard by steep increases in Medicare \u201cMedigap\u201d premiums-supplemental policies that help cover out-of-pocket expenses not limited by conventional Medicare. It notes that Medigap rates have been climbing quickly, often by 10% or more, and that many seniors have limited options if they want to switch coverage, due to rules around when they can enroll or move to different plans and potential waiting periods or restrictions tied to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/cdc-quietly-changed-basis-of-essential-public-health-services-from-research-to-equity\/\" title=\"CDC Quietly Changed Basis Of Essential Public Health Services From \u2018Research\u2019 To \u2018Equity\u2019\">health status<\/a>.<\/p>\n<p>The piece claims that this situation financially benefits AARP more than it helps seniors, alleging that AARP receives a royalty fee tied to Medigap premiums paid by its members. It argues AARP\u2019s incentives are therefore aligned with higher premiums,and criticizes the group for not clearly disclosing the extent of its financial interests when promoting AARP-branded Medigap plans,or its revenue relationships when <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/no-trump-talk-conservative-event-wont-ask-2024-candidates-about-indictments\/\" title=\"Conservative event avoids discussing indictments with 2024 candidates, excluding Trump.\">discussing policy matters<\/a> with members and Congress.<\/p>\n<p>it contrasts AARP-linked Medigap profits with UnitedHealth, which the article says has significantly more enrollees in its AARP-branded Medigap coverage than on Obamacare exchanges, and reports that when asked weather it would give up Medigap profits the way it pledged to return profits on <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/kevin-oleary-says-he-fell-victim-to-groupthink-lost-all-of-his-15-million-payout-as-ftx-ambassador\/\" title=\"Kevin O\u2019Leary Says He Fell Victim To \u2018...think,\u2019 Lost All Of His  Million Payout As FTX Ambassador\">exchange offerings<\/a>, the company indicated it would not extend that commitment to Medigap.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<div>\n<p>As <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-calls-travel-lid-for-wednesday-an-hour-after-bobulinski-interview-airs\/\" title=\"Biden Calls Travel Lid for Wednesday an Hour After Bobulinski Interview Airs\">health care costs<\/a> continue to rise, families of all ages and sizes continue to feel the pinch. But when seniors get squeezed, one organization in particular benefits, and it\u2019s not one you might think.<\/p>\n<p>While it claims to run a seniors\u2019 advocacy organization, AARP, formerly the American Association of Retired Persons, actually profits from its own members\u2019 economic misery. As premiums rise for its members, so too does AARP\u2019s financial windfall \u2014 a perverse set of circumstances for a purported consumer group.<\/p>\n<h2><strong>Medigap Premiums Spike<\/strong><\/h2>\n<p>A recent Kaiser Health News <a href=\"https:\/\/kffhealthnews.org\/medicare\/medigap-medicare-advantage-premiums-rate-increase-few-alternatives\/\" target=\"_blank\" rel=\"noreferrer noopener\">story<\/a> highlighted an underreported trend within insurance markets. In recent years, rates for Medicare supplemental insurance plans, which offset the cost of copayments and coinsurance that traditional Medicare does not cover, have risen rapidly. One <a href=\"https:\/\/www.telosactuarial.com\/blog\/2026-med-supp-rate-increases-q1\" target=\"_blank\" rel=\"noreferrer noopener\">analysis<\/a> of first-quarter filings for these Medigap plans shows most insurers increasing rates by upwards of 10 percent and in several cases by more than 20 percent.<\/p>\n<p>These premium increases leave seniors in a pinch for several reasons. First, traditional Medicare does not include a cap on out-of-pocket spending by beneficiaries. That absence makes a Medigap policy a virtual necessity, unless enrollees in traditional Medicare want to risk exposing themselves to tens or even hundreds of thousands of dollars in expenses should they develop a catastrophic medical condition.<\/p>\n<p>While all Medicare Advantage plans offer catastrophic coverage, they also impose restrictions on seniors\u2019 choice of doctors and hospitals. And if senior citizens dislikes their Medicare Advantage plan, they may not have a chance to return to Medigap coverage.<\/p>\n<p>Contrary to Democrat claims that Obamacare \u201cended discrimination against people with preexisting conditions,\u201d Medigap plans can \u2014 and do \u2014 impose <a href=\"https:\/\/www.wsj.com\/articles\/SB10001424052748704405704576063892468779556?msockid=13b3c291829f61711db3d019869f6fb7\" target=\"_blank\" rel=\"noreferrer noopener\">waiting periods<\/a> and other restrictions related to health status. While all seniors can buy a Medigap plan when they turn 65, <a href=\"https:\/\/kffhealthnews.org\/medicare\/medigap-medicare-advantage-premiums-rate-increase-few-alternatives\/\" target=\"_blank\" rel=\"noreferrer noopener\">beyond then<\/a>, \u201c[s]trict rules then kick in around when beneficiaries can enroll in or switch Medigap coverage and options become much more limited.\u201d <\/p>\n<p>Those rules mean many seniors facing surging Medigap premiums consider themselves stuck without other realistic options. The leftist Center for American Progress went so far as to call this dynamic the \u201c<a href=\"https:\/\/www.americanprogress.org\/article\/escaping-the-medigap-trap-a-path-to-real-choice-in-medicare\/\" target=\"_blank\" rel=\"noreferrer noopener\">Medigap trap<\/a>,\u201d which leads enrollees to remain in their Medicare supplemental plans.<\/p>\n<h2><strong>AARP Wins When Seniors Lose<\/strong><\/h2>\n<p>But even as some seniors feel trapped in a vise of rising premiums, one organization clearly benefits: AARP. As I have noted in <a href=\"https:\/\/commitmenttoseniors.org\/wp-content\/uploads\/2025\/03\/C2S-AARP-Report-2025.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">prior work<\/a> for American Commitment, the group receives a \u201croyalty fee\u201d that equals a percentage of premiums paid.<\/p>\n<p>AARP\u2019s own members have previously <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2008-12-04\/aarp-s-stealth-fees-often-sting-seniors-with-costlier-insurance\" target=\"_blank\" rel=\"noreferrer noopener\">derided<\/a> this arrangement as a \u201ckickback.\u201d But more than that, the arrangement means AARP\u2019s financial interests are diametrically opposed to its members\u2019. AARP makes more money the more seniors get charged in Medigap premiums, meaning the spike in Medigap premiums will give the organization a financial windfall. <\/p>\n<p>Yet while AARP advocates in favor of transparency for drug companies and other entities, it does not practice what it preaches. When members apply for AARP-branded Medigap plans, AARP does not clearly disclose the financial conflict of interest it has with those members. For that matter, neither does AARP <a href=\"https:\/\/www.americancommitment.org\/app\/uploads\/2025\/10\/CTS-AARP-Memo-2025.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">disclose<\/a> the sizable percentage of revenue it receives from UnitedHealth Group, the nation\u2019s largest insurer, when communicating with Congress or its own members about policy issues.<\/p>\n<h2><strong>Profitable Insurer<\/strong><\/h2>\n<p>For its part, UnitedHealth pledged to <a href=\"http:\/\/docs.house.gov\/meetings\/IF\/IF14\/20260122\/118890\/HMTG-119-IF14-Wstate-HemsleyS-20260122.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">rebate 2026 profits<\/a> related to its Obamacare Exchange offerings ahead of a <a href=\"https:\/\/docs.house.gov\/Committee\/Calendar\/ByEvent.aspx?EventID=118890\" target=\"_blank\" rel=\"noreferrer noopener\">congressional hearing<\/a> this past January \u2014 a time when insurers were still hoping Congress would extend <a href=\"https:\/\/thefederalist.com\/2021\/03\/02\/how-democrats-covid-bill-gives-welfare-to-the-wealthy\/\" target=\"_blank\" rel=\"noreferrer noopener\">enhanced Covid-era subsidies<\/a> that expired at the end of last year. UnitedHealth has <a href=\"https:\/\/thehill.com\/policy\/healthcare\/5699770-unitedhealth-group-affordable-care-act-profits\/\" target=\"_blank\" rel=\"noreferrer noopener\">only about 1 million members<\/a> on the Exchanges, a fraction of the <a href=\"https:\/\/www.unitedhealthgroup.com\/content\/dam\/UHG\/PDF\/investors\/2023\/UNH-Q4-2023-Form-10-K.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">more than 4 million<\/a> enrollees in its AARP-branded Medigap plan. <\/p>\n<p>In conjunction with the January hearing, Rep. Diana Harshbarger, R-Tenn., took me up on <a href=\"https:\/\/www.juniperresearchgroup.com\/post\/7123\/the-question-congress-should-ask-stephen-hemsley\" target=\"_blank\" rel=\"noreferrer noopener\">my suggestion<\/a> to ask UnitedHealth CEO Stephen Hemsley whether UnitedHealth would also forgo profits on its Medigap coverage. In a list of <a href=\"https:\/\/docs.house.gov\/meetings\/IF\/IF14\/20260122\/118890\/HMTG-119-IF14-Wstate-HemsleyS-20260122.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">responses<\/a> to written questions for the hearing record, Hemsley recently answered:<\/p>\n<blockquote>\n<p>Will you pledge to return any profits your company makes in the Medigap (Medicare supplemental) marketplace to America\u2019s seniors \u2014 similar to what you have pledged for consumers in the [Obamacare] marketplace? <\/p>\n<p>Our commitment for 2026 to return profits applies to what we have pledged for consumers in the [Obamacare] marketplace.<\/p>\n<\/blockquote>\n<p>Translation: Fat chance.<\/p>\n<h2><strong>Putting the Squeeze on Seniors<\/strong><\/h2>\n<p>The Medigap premium increases have rational explanations. Health care utilization rose after the pandemic due to pent-up demand, the senior population continues to age, and labor and other input costs have risen.<\/p>\n<p>But senior citizens don\u2019t deserve to get kicked in the teeth by a percentage-based \u201croyalty fee\u201d that quite literally adds insult to injury. And they shouldn\u2019t have an organization like AARP that claims to advocate for seniors but profits off of their misery \u2014 and fails to come clean with their own members about it.<\/p>\n<hr>\n<div>\n<p>      Chris Jacobs is founder and CEO of Juniper Research Group and author of the book &#8220;<a href=\"https:\/\/www.amazon.com\/dp\/1645720020\">The Case Against Single Payer<\/a>.&#8221; He is on Twitter: <a href=\"http:\/\/twitter.com\/chrisjacobsHC\">@chrisjacobsHC<\/a>.<\/p>\n<\/div><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Health costs are rising, hurting families-especially seniors-yet AARP, despite claiming to advocate, profits from their hardship<\/p>\n","protected":false},"author":521,"featured_media":2599794,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2026\/05\/Senior-in-Wheelchair.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[50548,54583,79250,37167,79249],"class_list":["post-2599793","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-aarp","tag-aging-2","tag-corporate-profit","tag-healthcare-policy","tag-senior-economy"],"fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2026\/05\/Senior-in-Wheelchair.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2599793","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/521"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2599793"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2599793\/revisions"}],"predecessor-version":[{"id":2599798,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2599793\/revisions\/2599798"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2599794"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2599793"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2599793"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2599793"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}