AARP Grows Into $636 Million Empire

[Judi Lynn]

Posted on Fri, Nov. 28, 2003

AARP Grows Into $636 Million Empire
SHARON THEIMER
Associated Press

WASHINGTON - AARP's fight for legislation giving private insurers a new role in Medicare surprised many Democrats, but in fact the giant retiree group has long been in the health insurance business itself.

In 45 years, AARP has grown from a program founded to insure retired teachers to a more than $636 million-a-year empire that pays its chief executive a half-million-dollar salary and lends its name to things such as pharmacy services and Medicare supplemental insurance, and discounts for hotel rooms, car rentals, shopping and cruises.

AARP bills itself as an advocacy group for older Americans, but draws more than two-thirds of its income from ventures other than its $12.50 membership fee. Its lobbying costs, though in the millions of dollars, are a tiny fraction of its revenue.

Executive director William Novelli says AARP is part business, part senior citizens' advocate and part lobbying group. (snip/...)

http://www.miami.com/mld/miamiherald/news/breaking_news/7366830.htm

[monarch]

1. Who do they count as "members?"

When my partner reached 50 (almost 14 years ago), I gave her an AARP membership as a joke. Since then, we have gotten the magazine, the newsletter and all the other mailings without ever paying a dime of dues. Is she a member? How many of their 35 million members never pay dues or do anything else to stay on their mailing lists?

[indypaul]

2. Wrong, AARP is

all about business. It is nothing more than a mass marketing
entity and could care less about its members other than the
fact that they buy insurance through them in order to receive
a commission. They are salivating at the thought of commissions
they will be making on the sale of mutial funds and annuities when
they, once again, betray their membership and support the passage of
so called "privatization" of Social Security. The actions of AARP
lobbyists in supporting the so called prescription drug legislation
is reprehensible. Those three hours of arm twisting and bribery
is, without a doubt, enough evidence that they should no longer be
allowed to include the word "American" in their name. And, while I
am no longer a member, I will only refer to them as Association of
Retired Persons and suggest the same to others.