AARP Forms New Partnerships – Closing Health Insurance Gaps for Seniors and Early Retirees

The senior organization AARP, already a powerful advocate for affordable health insurance for seniors, has formed two new strategic partnerships with two of the country’s largest insurers, Aetna and UnitedHealth, to offer access to an increased number of lower cost health insurance products for people 50 – 64.

This is an age group that is large portion of the membership of AARP, and an age group that most often has difficulty finding affordable health insurance in the individual market. Through the programs the AARP will offer financial incentives to Aetna and UnitedHealth for making changes in the quality of life and improving the health of AARP members that enroll in the plans.

Having the AARP name on a low cost health insurance plan holds a lot of weight with seniors, and in order to use the brand health insurance partners must meet certain criteria, such as making it easier for those who have had trouble obtaining health insurance get covered. Through the partnerships with Aetna and United, officials with the AARP expect enrollment in AARP-branded health insurance to double over the next five to seven years. This is a win-win for members seeking affordable health insurance, for the insurance companies who will write new policies, and for the lobbyist group who expects to collect an additional $1.5 billion in royalties for the use of the AARP brand. The funds the AARP collects from these health insurance partnerships go toward its social and political agenda, and primarily its efforts to increase affordable medical coverage for seniors. In an interview with the New York Times AARP CEO William Novelli said, "In launching these initiatives, we are driven by our mission to create a healthier America" The plans will be in full effect in about half of the States by 2008.

Unlike any other insurance products currently in the market place, the key to these plans are they are driven by performance, specifically the successful treatments for the conditions of greatest concern to seniors, such as diabetes and hip replacements. Financial incentives will be offered to the plan partners for success in improving the health of patients in these areas. AARP will track and publicly report on the performance of the plans and will revise payments to the partners based on performance and adherence to treatment guidelines.

The AARP says the partners will also be pressured to provide affordable health insurance to underserved ethnic and minority populations and will have to offer services and policy documentation and materials in multiple languages.