Commitment to Seniors has released a report highlighting concerns over AARP's long-standing licensing partnership with UnitedHealth, which includes a $9 billion royalty arrangement. The report suggests that this financial relationship may create incentives that could make health coverage less affordable for seniors and raises issues regarding transparency.
The memo claims that AARP's revenue model conflicts with its public advocacy on affordability. Commitment to Seniors states that the partnership with UnitedHealth generates substantial royalty income, which increases with product volume. Meanwhile, AARP lobbies on coverage and subsidy policies affecting these products. KFF Health News has also reported on AARP’s marketing partnerships related to Medicare products, raising questions about transparency in fee structures.
According to the U.S. House Ways and Means Committee’s 2011 investigative report, hosted by KFF Health News, AARP’s Medigap arrangement with UnitedHealth included a "royalty fee" equal to 4.95% of premiums. This structure means AARP’s revenue grows with higher premium levels and policy renewals. At the time, Medicare-related products were the primary source of AARP’s royalty income, which critics argue raises concerns about incentives and affordability for seniors.
The budget implications of AARP-backed policies are significant. The Congressional Budget Office (CBO) reported in September 2025 that permanently extending enhanced Affordable Care Act (ACA) premium tax credits would increase federal deficits by approximately $350 billion through 2034 while expanding coverage to millions. These effects reflect higher subsidies for a broader set of enrollees and increased participation in the marketplaces.
In its 2025 memo titled "How AARP Makes Health Insurance Unaffordable for Its Members," Commitment to Seniors reported that AARP received a one-time $9.062 billion royalty payment tied to an exclusive licensing arrangement with a UnitedHealth-affiliated insurer, intended to be drawn down over roughly 12 years. The memo contrasts this figure with $288.8 million in 2024 membership dues—about 31 times smaller—to emphasize AARP’s financial dependence on insurance-linked royalties. The group argues these incentives may encourage expansion of subsidized exchange enrollment and maintain premium flows impacting seniors’ costs.
AARP is a 501(c)(4) interest group founded in 1958 and headquartered in Washington, D.C., focusing on Americans aged 50 and older. According to its history page, the organization began with founder Ethel Percy Andrus's effort to expand access to affordable coverage. Today, AARP operates through affiliates like AARP Services Inc., maintaining national reach with a large membership base, media operations, and program arms.
