AARP (formerly called the American Association of Retired Persons) is an
interest group in the United States focusing on issues affecting those over the age of fifty. The organization said it had more than 38 million members in 2018. The magazine and bulletin it sends to its members are the two largest-circulation publications in the
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...
.
AARP was founded in 1958 by
Ethel Percy Andrus
Ethel Percy Andrus (September 21, 1884 – July 13, 1967) was a long-time educator and the first woman high school principal in California. She was also an elder rights activist and the founder of AARP in 1958. In 1993 she was inducted into t ...
, a retired educator from
California
California is a U.S. state, state in the Western United States, located along the West Coast of the United States, Pacific Coast. With nearly 39.2million residents across a total area of approximately , it is the List of states and territori ...
, and Leonard Davis, who later founded the
Colonial Penn Group of insurance companies. It is an influential
lobbying
In politics, lobbying, persuasion or interest representation is the act of lawfully attempting to influence the actions, policies, or decisions of government officials, most often legislators or members of regulatory agency, regulatory agencie ...
group in the United States. AARP sells paid memberships, and markets insurance and other services to its members.
History
According to the group's official history, AARP evolved from the National Retired Teachers Association (NRTA), which Dr.
Ethel Percy Andrus
Ethel Percy Andrus (September 21, 1884 – July 13, 1967) was a long-time educator and the first woman high school principal in California. She was also an elder rights activist and the founder of AARP in 1958. In 1993 she was inducted into t ...
had established in 1947 to promote her philosophy of productive
aging
Ageing ( BE) or aging ( AE) is the process of becoming older. The term refers mainly to humans, many other animals, and fungi, whereas for example, bacteria, perennial plants and some simple animals are potentially biologically immortal. In ...
, and to promote health insurance for retired teachers. In seeking group insurance coverage for retired teachers, Andrus was rejected by dozens of private insurance companies, which at the time deemed adults over age 65 to be "uninsurable." In 1955, Continental Casualty Co. agreed to offer coverage to retired teachers in
New York State
New York, officially the State of New York, is a state in the Northeastern United States. It is often called New York State to distinguish it from its largest city, New York City. With a total area of , New York is the 27th-largest U.S. stat ...
. The experiment was a financial success, and three years later, the NRTA Health Plan was expanded nationally. In 1958, Dr. Andrus created the American Association of Retired Persons (AARP) as a sister organization to NRTA. Through membership in AARP, the general population age 55 and older gained access to the insurance benefits previously limited to former teachers.
Dr. Andrus continued to run AARP until 1967, when she died of a heart attack at age 82. Today, the NRTA is a division within AARP.
Other sources offer an alternative version of the group's origins. ''
60 Minutes
''60 Minutes'' is an American television news magazine broadcast on the CBS television network. Debuting in 1968, the program was created by Don Hewitt and Bill Leonard, who chose to set it apart from other news programs by using a unique styl ...
'' reported in a 1978 exposé that AARP had been established as a marketing device by Leonard Davis, founder of the
Colonial Penn Group insurance companies, after he met Ethel Percy Andrus. According to critics, until the 1980s AARP was controlled by Davis, who promoted its image as a non-profit advocate of retirees in order to sell insurance to members. AARP severed ties with Davis in 1979 and began dropping Colonial Penn products. AARP sought competitive bids for insurance coverage and in 1981 chose Prudential Insurance Company of America to underwrite the group health plan for AARP members.
The organization was originally named the ''American Association of Retired Persons'', but in 1999, it officially changed its name to "AARP" (pronounced one letter at a time, "ay ay ar pee"), to reflect that its focus was no longer American retirees. AARP no longer requires that members be retired, and there are no longer any age restrictions even for a full membership.
Overview
![Tom Perez at AARP Meeting in 2015](https://upload.wikimedia.org/wikipedia/commons/1/1e/Tom_Perez_at_AARP_Meeting_in_2015.jpg)
AARP addresses issues affecting older Americans through
lobbying
In politics, lobbying, persuasion or interest representation is the act of lawfully attempting to influence the actions, policies, or decisions of government officials, most often legislators or members of regulatory agency, regulatory agencie ...
efforts at the state and national governmental level, an activity permitted by its
501(c)(4)
A 501(c) organization is a nonprofit organization in the Law of the United States#Federal law, federal law of the United States according to Internal Revenue Code (26 U.S.C. § 501(c)) and is one of over 29 types of nonprofit organizations exe ...
status. The organization says that it is non-partisan and does not support, oppose or give money to any candidates or political parties. The total revenue for 2006 was approximately $1 billion and it spent $23 million on lobbying. Middle-class security has been a major focus for the organization in recent years. AARP also provides extensive consumer information, volunteer opportunities, and events including an annual National Event & Expo.
![AARP volunteers Miami 2015](https://upload.wikimedia.org/wikipedia/commons/4/4a/AARP_volunteers_Miami_2015.jpg)
AARP launched Life Reimagined in May 2013, calling it a "first-of-its-kind series of online and offline experiences that guide people through life transitions by helping them discover new possibilities and connect with a community of people pursuing similar passions and goals". ''USA Today'' called the initiative "the latest step for the AARP ... as it continues to rebrand itself and become the go-to address for feeling good about aging".
Board of directors
The membership of the board of directors is kept up to date on the AARP Web site.
Advocacy
Health care
AARP has been active in health care policy debates since the 1960s, and its recent engagement is a reflection of this long-standing involvement.
AARP testified before
Congress
A congress is a formal meeting of the representatives of different countries, constituent states, organizations, trade unions, political parties, or other groups. The term originated in Late Middle English to denote an encounter (meeting of a ...
in support of the Older Americans Act and the amendments to Social Security that created the Medicare Program, which President Johnson enacted into law in 1965.
AARP's public stances influenced the
United States Congress
The United States Congress is the legislature of the federal government of the United States. It is bicameral, composed of a lower body, the House of Representatives, and an upper body, the Senate. It meets in the U.S. Capitol in Washing ...
' passage of the
Medicare Prescription Drug, Improvement, and Modernization Act
The Medicare Prescription Drug, Improvement, and Modernization Act, also called the Medicare Modernization Act or MMA, is a federal law of the United States, enacted in 2003. It produced the largest overhaul of Medicare in the public health progr ...
, which created
Medicare Part D
Medicare Part D, also called the Medicare prescription drug benefit, is an optional United States federal-government program to help Medicare beneficiaries pay for self-administered prescription drugs. Part D was enacted as part of the Medica ...
, in 2003, and also influenced Congress by resisting changes to
Social Security
Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specificall ...
in 2005. AARP also addressed health care issues in their campaign targeting the 2008 elections with Divided We Fail.
In a 2003 editorial in the ''Los Angeles Times'', critic Dale Van Atta wrote that AARP was doing unauthorized
lobbying
In politics, lobbying, persuasion or interest representation is the act of lawfully attempting to influence the actions, policies, or decisions of government officials, most often legislators or members of regulatory agency, regulatory agencie ...
for its membership and was lobbying against the best interests of its membership. He said that by lobbying for the Medicare Prescription Drug, Improvement, and Modernization Act, AARP leaders had betrayed the membership.
By 2009, more than 50 million Americans were without health insurance coverage at some point during the year. AARP backed the Affordable Care Act (ACA) proposed by President Obama. In early 2017, AARP strongly opposed the
American Health Care Act of 2017, saying that older Americans would be unfairly burdened with higher premiums and smaller tax credits. In 2017, AARP successfully opposed legislative efforts to repeal the ACA.
Health insurance
Approximately seven million people have AARP-branded health insurance, including drug coverage and
Medigap, as of April 2007
and the association earns more income from selling insurance to members than from membership dues. In 2008, AARP began offering new health insurance products: an
HMO
In the United States, a health maintenance organization (HMO) is a medical insurance group that provides health services for a fixed annual fee. It is an organization that provides or arranges managed care for health insurance, self-funded healt ...
for
Medicare recipients, in partnership with
UnitedHealth Group; and a
PPO and "a high-deductible insurance policy that could be used with a health savings account" to people aged 50–64, in partnership with
Aetna.
While AARP is not an insurer, it allows its name to be used by insurance companies in the sale of products, for which it is paid a commission.
In a November 2008 editorial, The Des Moines Register and the Canada Free Press called AARP a lobbying group masquerading as a non-profit, meanwhile charging high membership fees and selling expensive private health care plans.
Senator
Chuck Grassley
Charles Ernest Grassley (born September 17, 1933) is an American politician serving as the president pro tempore emeritus of the United States Senate, and the Seniority in the United States Senate, senior United States Senate, United States sen ...
(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 markets self-branded
Medigap policies. As of October 2009, Medical care reform contained a proposal to trim an associated program
Medicare Advantage
Medicare Advantage (Medicare Part C, MA) is a capitated program for providing Medicare benefits in the United States. Under Part C, Medicare pays a private-sector health insurer a fixed payment. The insurer then pays for the health care expenses ...
, 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. According to an
Annenberg Public Policy Center
The Annenberg Public Policy Center (APPC) 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. and Philadelphia, where the University of Pennsyl ...
report, critics have said AARP had a conflict of interest in supporting the Act, because it "derives income from the sale of health and life insurance policies", by licensing its brand to insurance dealers such as
New York Life
New York Life Insurance Company (NYLIC) is the third-largest life insurance company in the United States, the largest mutual life insurance company in the United States and is ranked #67 on the 2021 Fortune 500 list of the largest United States ...
, and would benefit financially from passage of the legislation.
In 2004, ''
BusinessWeek'' 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.
Single-payer
Single-payer advocates have criticized AARP for not supporting the single-payer or public option during the health care debate.
[Should universal care advocates bite their tongues on single-payer?](_blank)
Remapping Debate, June 8, 2011, By Mike Alberti 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 "require a very significant tax increase". But Rother admitted that it would be possible to design a system that would avoid these problems. Since 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.
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 reform
Healthcare reform in the United States has a long history. Reforms have often been proposed but have rarely been accomplished. In 2010, landmark reform was passed through two federal statutes enacted in 2010: the Patient Protection and Afforda ...
. 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).
Social Security
Since March 2012, AARP's "You've Earned a Say" campaign has sought to foster nonpartisan conversations about how to strengthen Social Security and Medicare. The Richmond (VA) Times-Dispatch reported: "AARP took the debate about Medicare and Social Security from what it called behind closed doors in Washington to a series of town hall meetings around the country to make sure retirees have a voice in the discussion."
In June 2011, AARP dropped its long-standing opposition to cutting Social Security benefits. A news release emphasized that "AARP has not changed its position on Social Security". 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. John Rother, AARP's policy chief and a prime mover for the new position, said: "The ship was sailing. I wanted to be at the wheel when that happens." AARP declined to join a coalition of about 300 unions, women's groups, and liberal advocacy organizations created to fight Social Security benefit cuts. Rother said, "The coalition's role was to kind of anchor the left, and our role is going to be to actually get something done".
Age discrimination
AARP advocated for the
Age Discrimination in Employment Act of 1967
The Age Discrimination in Employment Act of 1967 (ADEA; to ) is a United States labor law that forbids employment discrimination against anyone, at least 40 years of age, in the United States (see ). In 1967, the bill was signed into law by Pr ...
and the
Age Discrimination Act of 1975
Age or AGE may refer to:
Time and its effects
* Age, the amount of time someone or something has been Life, alive or has existed
** East Asian age reckoning, an Asian system of marking age starting at 1
* Ageing or aging, the process of becoming o ...
. In 2009, AARP backed the Protecting Older Workers Against Discrimination Act (POWADA), which aims to restore fairness for workers 40 and older by treating age discrimination as seriously as other forms of workplace discrimination.
Affiliates
AARP has several affiliated organizations, including:
* AARP Foundation, a
501(c)(3)
A 501(c)(3) organization is a United States corporation, trust, unincorporated association or other type of organization exempt from federal income tax under section 501(c)(3) of Title 26 of the United States Code. It is one of the 29 types of 50 ...
non-profit charity that helps people over age 50 who are at social and economic risk; it includes:
** AARP Experience Corps, a 501(c)(3) non-profit charity that encourages people over age 50 to mentor and tutor school children;
** AARP Institute, a non-profit charity that holds some of AARP's charitable gift annuity funds;
* AARP Services, Inc., a for-profit corporation that provides quality control and research,
* Legal Counsel for the Elderly, a 501(c)(3) non-profit charity that provides legal assistance to seniors in Washington, D.C.
* AARP Financial Services Corporation, a for-profit corporation that holds AARP's real estate;
* AARP Insurance Plan, an organization that holds some of AARP's group health insurance policies;
Because of AARP's sizable membership, it is able to generate its own income without being dependent on government grants or private donors, though it receives help from both of these for specific programs. According to its 2018 Consolidated Financial Statement, the largest sources of income were:
* royalties for the rights to use AARP's intellectual property (name, logo, etc.) paid by commercial providers of products, services and discounts for AARP members $908,960,000;
* membership dues $301,017,000;
* advertisements placed in its publications $147,687,000; and
* total operating revenue $1,648,795,000
AARP Services, Inc. and AARP Financial Incorporated
AARP Services, Inc., founded in 1999, is a wholly owned taxable subsidiary of AARP that manages the range of products and services offered as benefits to members. Its offers 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
The U.S. Securities and Exchange Commission (SEC) is an independent agency of the United States federal government, created in the aftermath of the Wall Street Crash of 1929. The primary purpose of the SEC is to enforce the law against market ...
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.
AARP Foundation
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 AARP Foundation's website claims the non-profit "wants to win back opportunity for those now in crisis, so thousands of vulnerable low-income Americans 50+ can regain their foothold, continue to serve as anchors for their families and communities, and ensure that their best life is still within reach". Key areas of focus are hunger, income, housing, and isolation. The Foundation's vision is "a country that is free of poverty where no older person feels vulnerable".
One of the goals of the AARP Foundation is its Drive to End Hunger. In 2011, AARP and AARP Foundation formed a relationship with
NASCAR
The National Association for Stock Car Auto Racing, LLC (NASCAR) is an American auto racing sanctioning and operating company that is best known for stock car racing. The privately owned company was founded by Bill France Sr. in 1948, and hi ...
driver
Jeff Gordon
Jeffery Michael Gordon (born August 4, 1971) is an American former professional stock car racing driver, who is the Vice Chairman for Hendrick Motorsports. He raced full-time from 1993 to 2015, driving the No. 24 Chevrolet for Hendrick M ...
and
Hendrick Motorsports
Hendrick Motorsports (HMS) is an American professional auto racing organization that competes in the NASCAR Cup Series. The team was founded in 1984 as All Star Racing by Rick Hendrick. Hendrick Motorsports has won a NASCAR-record 291 Cup Seri ...
to increase awareness of hunger in America with the No. 24 Drive to End Hunger race car and related food drives. Through the Drive to End Hunger program, AARP also sponsored Hendrick driver
Kasey Kahne, beginning in 2016.
Charity Navigator
Charity Navigator is a charity assessment organization that evaluates hundreds of thousands of charitable organizations based in the United States, operating as a free 501(c)(3) organization. It provides insights into a nonprofit’s financial s ...
rated the AARP Foundation overall at 91.22 out of 100 possible points (a "four star" rating), giving it a financial rating of 88.26 out of 100 ("three stars") and an accountability and transparency rating of 96.00 ("four stars") for its
fiscal year
A fiscal year (or financial year, or sometimes budget year) is used in government accounting, which varies between countries, and for budget purposes. It is also used for financial reporting by businesses and other organizations. Laws in many ...
2017.
AARP Driver Safety
In 1979, AARP introduced the nation's first driver safety course geared towards older adults. AARP Driver Safety, 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 U.S.
In addition to course fees, the program is supported by a grant from the automobile manufacturer,
Toyota
is a Japanese multinational automotive manufacturer headquartered in Toyota City, Aichi, Japan. It was founded by Kiichiro Toyoda and incorporated on . Toyota is one of the largest automobile manufacturers in the world, producing about 10 ...
. Over half million drivers completed the course in 2012 and over 15 million people completed the courses since 1979.
AARP publications and broadcasts
''AARP The Magazine'', with a circulation of approximately 37 million and the ''AARP Bulletin'' with 30 million as of 2016, are the two largest-circulation publications in the United States.
''
AARP The Magazine
''AARP: The Magazine'' is an American bi-monthly magazine, published by AARP, which focuses on aging-related issues.
History and operations
In 1958, AARP began publishing a magazine titled ''Modern Maturity.'' ''Modern Maturity'' was later sp ...
'' (known until 2002 as ''Modern Maturity''), is a lifestyle magazine for people 50+. Established in 1958, the magazine is distributed