AARP Health Insurance Plans, Medigap, and Member Facts
Author: Disabled World (DW)
Updated/Revised Date: 25 Jul 2026
Table of Contents:
Synopsis - Definition - About This Section - FAQs - Publications - Subtopics
Synopsis
AARP health insurance information covering branded Medigap and Medicare plans, the group's history since 1958, membership numbers, and its role as a lobby.
At a Glance
- 1 - AARP is not an insurer and earns commissions for licensing its name.
- 2 - Dr. Ethel Percy Andrus founded AARP in 1958, building on the National Retired Teachers Association she started in 1947.
- 3 - AARP support helped move the 2003 Medicare Prescription Drug, Improvement, and Modernization Act, the law that created Medicare Part D.
- 4 - The organization reports more than 40 million members, with offices in all 50 states, Washington D.C., Puerto Rico, and the U.S. Virgin Islands.
Topic Definition
- AARP Health Insurance
AARP health insurance is a family of medical, Medicare Supplement, prescription drug, and related coverage products that carry the AARP name but are actually written and administered by licensed insurance companies. AARP itself is a membership and advocacy organization for people aged 50 and over, not a carrier, so it does not underwrite policies, set medical criteria, or pay claims; it licenses its brand to insurers and collects a royalty on the business those insurers write to members. In practice that means a member who buys an AARP Medicare Supplement policy is entering a contract with the underwriting company, and questions about premiums, rate increases, claim denials, or coverage limits go to that insurer rather than to AARP. The arrangement has become a major revenue stream, bringing the organization more money than membership dues, and it sits alongside AARP's separate work lobbying Congress on Medicare, Social Security, and other issues affecting older Americans.
Overview
AARP
As a social welfare organization, as well as, the nation's largest membership organization for people aged 50 Plus, AARP is leading a revolution in the way people view and live life. AARP, formerly the American Association of Retired Persons, is a United States-based non-governmental organization and interest group, founded by Dr. Ethel Percy Andrus in 1958 and based in Washington, D.C. AARP is a nonprofit, nonpartisan membership organization that helps people 50 and over improve the quality of their lives.
AARP Facts and Statistics
According to the group's official history, Dr. Ethel Percy Andrus 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 health insurance for retired teachers.
After ten years, Andrus opened the organization to all Americans over 50, creating AARP. Approximately seven million people have AARP branded health insurance, including drug coverage and Medigap, as of April 2007 and AARP earns more income from selling insurance to members than it does from membership dues.
- 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.
- AARP operates as a non-profit advocate for its members and as one of the most powerful lobbying groups in the United States, and it also sells insurance, investment funds and other financial products.
- AARP claims over 40 million members, making it one of the largest membership organizations in the United States with offices in all 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands.
- AARP is also 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) status.
- AARP has been active in health care policy debates since c. 1960 and its recent engagement is a reflection of this long-standing involvement.
- 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 by resisting radical changes to Social Security in 2005.
- Approximately seven million people have AARP branded health insurance plans, including drug coverage and Medigap.
- AARP earns more income from selling insurance to members than it does from membership dues.
- AARP offers 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.
The AARP Foundation is AARP's affiliated charity dedicated to serving vulnerable people 50+ by creating solutions that help them secure the essentials and achieve their best life. AARP subscribes to the Malcolm Baldridge definition of diversity, which refers to valuing and benefiting from personal differences. These differences address many variables; including race, religion, color, gender, national origin, disability, sexual orientation, socioeconomic status, age and generational preferences, education, geographic origin, and skill characteristics; as well as differences in ideas, thinking, academic disciplines, and perspectives.
Frequently Asked Questions
Do you have to be retired to join AARP?
No, retirement is not a requirement, and the organization dropped the words American Association of Retired Persons in favor of the initials for that reason. Full membership is open to anyone aged 50 or over, a spouse or partner is normally included at no extra charge, and people under 50 can usually join as associate members.
How much does AARP membership cost?
Annual dues are modest, generally in the range of about $15 to $20 for a single year, with lower per-year pricing on multi-year and automatic renewal options. Membership is separate from any insurance premium, so joining does not obligate you to buy a policy.
Which company underwrites AARP Medicare Supplement plans?
AARP branded Medicare Supplement insurance is underwritten by UnitedHealthcare Insurance Company, while other AARP branded products have been offered through carriers such as Aetna and Hartford for auto and home lines. Always confirm the underwriter named on the application, since that company sets the rates and handles claims.
What does Medigap coverage actually pay for?
Medigap, or Medicare Supplement insurance, pays some of the costs Original Medicare leaves behind, including the Part A hospital deductible and coinsurance, Part B coinsurance and copays, and in some plans skilled nursing coinsurance and limited foreign travel emergency care. Plans are standardized by letter, so a Plan G from one insurer covers the same benefits as a Plan G from another, and the difference is price and service.
Can someone under 65 on Medicare because of a disability buy a Medigap policy?
Federal law does not guarantee Medigap access to Medicare beneficiaries under 65, so availability depends entirely on state rules, and roughly half of states require insurers to offer at least one plan to younger beneficiaries. Where coverage is available it often costs considerably more, which leads many younger enrollees to compare Medicare Advantage as an alternative.
What is the difference between AARP and the AARP Foundation?
AARP is a membership and advocacy organization that lobbies and licenses commercial products, while the AARP Foundation is a separate affiliated charity that runs assistance programs such as tax help, food security, job training, and legal advocacy for low-income people over 50. Donations to the Foundation are tax deductible, whereas membership dues are not.
Can I cancel an AARP membership or insurance policy and get money back?
Membership can be canceled at any time, and AARP offers a refund of dues for the unused portion of the term on request. Insurance policies follow the insurer's own rules, and Medigap policies come with a 30 day free look period during which you can return the policy for a full premium refund.
Curated and edited by Ian C. Langtree, Founder & Editor-in-Chief, Disabled World. This section is maintained by the Disabled World editorial team.
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