If you are over the age of 50, you might be a member of the American Association of Retired People (AARP). Many might think that this organization has their best interests at heart. However, theres significant reason to question their motives.
AARP has steadfastly argued for government involvement in health care. It argued for Medicares prescription drug benefit. While it might seem noble, this benefit is extremely short sighted. First, its a financial catastrophe. And, second, it has left you holding an empty bag for the products you might really need — nutrition.
I have issues with AARP. I believe it is in bed with Big Pharma. Why else would it lobby for you to get coverage for chemical treatment while getting no consideration for nutrients or alternative therapies that might totally eliminate the need for the synthetic drugs?
This came home for me recently when my own retired brother got drug coverage for a statin for a marginal cholesterol problem. Yet he gets no reimbursement for his out-of-pocket expenses for a supplement that has, for now, resolved his cholesterol problem. It did so at no risk and less expense. (By the way, that supplement is Advanced Cholesterol Formula.)
But theres another reason I have problems with AARP. Many seniors have insurance through AARP. Seniors think that they save money using this insurance. One member found that he was paying more than $1,000 through AARP for auto insurance he could have gotten cheaper from a private company. And hes not alone. Many seniors are discovering their deals with AARP are not such a deal.
When you see how AARP plays this game, its clear they have their own interests at heart. AARP brought in almost a half-billion dollars in 2007 from fees insurers pay for the organizations endorsement. AARP also gained about $40 million from simply holding clients premiums for a month, reaping profit of investing the premiums during that time.
Royalties and fees now make up about 43% of AARPs revenue, up from 11% in 1999. The organization has a $200 million debt on its extravagant building in Washington, DC from where it does formidable government lobbying. AARP is widely considered the most powerful interest group in the country. As the boomer generation enters retirement, its force and clout will grow.
AARP needs to take a good hard look at who it is serving. Itself? The establishment? Or the needs of its individual members? AARP could be a most wonderful organization if it lobbied for eliminating government involvement in health care. Physicians are refusing to treat Medicare patients in droves. They are rightfully fearful of the horrible regulations.
Its impossible to keep up with everything the government mandates. They are afraid of prison for unknowingly violating those regulations. AARP needs to make changes in the way it does business. But it would cost them significant revenue. So do not expect changes any time soon. The only thing you can do about it is to vote with your dollars and walk away from AARP.
Ref: Gary Cohn and Darrell Preston, Bloomberg.com, December 4, 2008; AARP Signs Contracts With Aetna and UnitedHealth Group, AAPS News of the Day, May 5, 2007; Crumbling Medicare Foundation Will Topple With Addition of Drug Benefit: New Benefits Should Be Delayed, AAPS Press Release 3/23/04.