AARP

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Current logo for AARP, in use since January 2007
Current logo for AARP, in use since January 2007
For the AppleTalk protocol developed by Apple Computer, see AppleTalk address resolution protocol (AARP).

AARP, formerly the American Association of Retired Persons, is a United States-based non-government organization (a special interest group). According to its mission statement,[1] it is "a nonprofit, nonpartisan membership organization for people age 50 and over ... dedicated to enhancing quality of life for all as we age," which "provides a wide range of unique benefits, special products, and services for our members." AARP operates as a non-profit advocate for its members, one of the most powerful lobbying groups in the United States, and also sells insurance, investment funds and other financial products. AARP claims over 38 million members,[2] making it one of the largest membership organizations for people age 50 and over in the United States. Membership is expected to grow significantly as baby boomers age.

Contents

[edit] History

Dr. Ethel Percy Andrus, a retired high school principal, founded AARP in 1958. AARP evolved from the National Retired Teachers Association (NRTA), which Andrus had established in 1947 to promote her philosophy of productive aging, and in response to the need of retired teachers for health insurance. After ten years, Andrus opened the organization to all Americans over 50, creating AARP. Today, NRTA is a division within AARP.

According to critics, until the 1980s AARP was controlled by businessman Leonard Davis, who promoted its image as a non-profit advocate of retirees in order to sell insurance to members.[3] In the 1990s, the United States Senate investigated AARP's non-profit status, with Republican Senator Alan Simpson, then chairman of the Finance Committee's Subcommittee on Social Security and Family Policy, questioning the organization's tax exempt status in congressional hearings. These investigations did not reveal sufficient evidence to change the organization.[citation needed]

The organization was originally named American Association of Retired Persons, but to reflect that its focus had become broader than American retirees, in 1999 it officially changed its name to just "AARP" (pronounced one letter at a time, "A-A-R-P").[4] AARP no longer requires that members be retired.

[edit] Activities

AARP is widely known for addressing issues affecting older Americans through a multitude of initiatives, including lobbying efforts at the state and national governmental level, an activity permitted by its 501(c)(4) status. The organization claims that it is non-partisan and does not support, oppose or give money to any candidates or political parties. AARP's total revenue for 2006 was approximately $1 billion and it spent $23 million on lobbying. [5]

AARP Services, Inc., founded in 1999, is a wholly owned subsidiary of AARP. AARP Services manages the wide range of products and services that are offered as benefits to AARP’s 38+ million members. The offers span health products, travel and leisure products, and life event services. Specific products 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. AARP Services develops new products, manages and markets products and services, creates and maintains partnership and sponsorship relationships, and develops and manages AARP’s Web site, AARP.org.

AARP Services founded AARP Financial Incorporated, a subsidiary that manages AARP-endorsed financial products including AARP Funds.

The 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 organization also publishes AARP The Magazine[6] (known until 2002 as Modern Maturity), a magazine focusing on aging issues. Established in 1958, the magazine, distributed bi-monthly, is sent to every AARP member, giving the free magazine a circulation AARP claims to be the "world's largest". AARP also publishes the AARP Bulletin, Segunda Juventud, Live & Learn, and has a books division.

[edit] Health Care

Approximately seven million people have AARP branded health insurance, including drug coverage and medigap, as of April 2007 [7] and AARP earns more income from selling insurance to members than it does from membership dues. [8]

AARP's public stances influenced the United States Congress' passage of the Medicare Prescription Drug, Improvement, and Modernization Act, which authorized the creation of Medicare Part D, in 2003, and also influenced the Congress' resistance to changes to Social Security in 2005.[citation needed] AARP also plans to address health care issues in their campaign targeting the 2008 elections, Divided We Fail.

In 2008, AARP plans to begin offering several new health insurance products: An HMO 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. AARP will likely become the largest source of health insurance for Medicare recipients, and AARP estimates the new products will increase its health insurance customers to 14 million by 2014.[9] [10]

AARP is not an insurer and does not pay insurance claims. Instead, AARP allows its name to be used by insurance companies in the sale of insurance products, for which it is paid a commission like an insurance agent.[citation needed]

[edit] Divided We Fail

In early 2007 AARP introduced their "Divided we Fail" campaign, the largest political effort in its history, designed to address health care and long-term financial security. The campaign is a partnership with the Business Roundtable and Service Employees International Union, and will encompass advertising in national outlets and in the primary states, online activities, and traditional grassroots work, in order to engage the public, business and elected officials in the debate, and to encourage public leaders to offer solutions. [citation needed] Nancy LeaMond, executive officer for social impact, said, "We want to really get to these candidates and ask for action, answers and accountability on these questions."[11]

[edit] Brand Revitalization

In February of 2007, AARP announced the launch of a new advertising campaign designed to address issues that will impact future generations and showcase the AARP brand. The campaign, called “Future Champions,” features children talking about the state of healthcare and financial security. The multigenerational focus is designed to reinforce the AARP's Divided We Fail coalition.[citation needed]

[edit] Criticism

In an editorial column in the Los Angeles Times, critic Dale Van Atta says AARP does unauthorized lobbying for its membership, and lobbies against the best interests of its membership. Van Atta says that by lobbying for the above-mentioned Medicare Prescription Drug, Improvement, and Modernization Act, AARP leaders betrayed the membership.[12]

According to an Annenberg Public Policy Center report, critics have said AARP had a conflict of interest in supporting the Act, because AARP “derives income from the sale of health and life insurance policies,” by licensing its brand to insurance dealers such as New York Life,[13] and would benefit financially from passage of the legislation.[14]

BusinessWeek magazine says that in the past questions have arisen 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.[15]

[edit] See also

[edit] References

  1. ^ http://www.aarp.org/about_aarp/aarp_overview/a2002-12-18-aarpmission.html
  2. ^ http://www.aarp.org/research/press-center/presscurrentnews/rx_bargaining_power.html
  3. ^ Krugman, Paul. "Demographics and Destiny", New York Times, 20 October 1996
  4. ^ AARP History
  5. ^ On Issues From Medicare to Medication, AARP's Money Will Be There Washington Post, 24 April 2007
  6. ^ http://www.aarpmagazine.org AARP The Magazine
  7. ^ AARP Says It Will Become Major Medicare Insurer While Remaining a Consumer Lobby New York Times, 17 April 2007
  8. ^ Los Angeles Times
  9. ^ AARP Says It Will Become Major Medicare Insurer While Remaining a Consumer Lobby New York Times, 17 April 2007
  10. ^ AARP Press Release accessed 17 April 2007
  11. ^ AARP Mobilizing to Hound 2008 Candidates. March 22, 2007.
  12. ^ Van Atta, Dale. "This Isn't the Old AARP", Los Angeles Times, 24 Nov 2003. 
  13. ^ AARP Life Insurance Program, retrieved October 31, 2006
  14. ^ Annenberg Public Policy Center report on AARP
  15. ^ BusinessWeek.com

[edit] Further reading

  • Dale Van Atta, Trust Betrayed: Inside the AARP (Regnery Publishing,1998). ISBN 0-89526-485-4
  • Charles R. Morris, The AARP: America's Most Powerful Lobby and the Clash of Generations (Crown, 1996). ISBN 0-8129-2753-2
  • Peter G. Peterson, Will America Grow Up Before It Grows Old? How the Coming Social Security Crisis Threatens You, Your Family, and Your Country (Random House, 1996). ISBN 0-679-45256-7

[edit] External links

Retrieved from "http://en.wikipedia.org/wiki/AARP"
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