As UnitedHealth Group faces a criminal investigation by the U.S. Department of Justice alleging potential Medicare fraud, according to a Wall Street Journal report, some question whether its primary Medicare Advantage marketing partner, AARP, also should face scrutiny.
AARP faces questions about whether it required Medicare Advantage plan sponsors to oversee the business practices of companies that offer Medicare Advantage products. The question is whether AARP complied with the government’s rules to oversee its partner, UnitedHealth Group.
AARP makes over $1 billion annually from its partnerships with companies like UnitedHealth, according to American Commitment President Phil Kerpen, including by selling Medicare Advantage products to its 10 million members. That’s far more than it makes off its membership fees, Kerpen told Fox Business.
“AARP now makes over a billion dollars a year in corporate royalties, more than triple what they make in membership dues,” Kerpen said. “The vast majority of those royalties come from the country’s largest insurance company, UnitedHealthGroup, via a skim of 5% of the monthly premiums in the AARP-branded UnitedHealth insurance products. AARP’s lobbying work always advances the interests of UnitedHealth rather than seniors. Seniors, for instance, overwhelmingly opposed the Inflation Reduction Act, but UnitedHealth loved its price controls and supersized Obamacare subsidies, so AARP went all out for it.”
The Centers for Medicare and Medicaid Services (CMS) requires that every Medicare Advantage plan sponsor must “Establish and Maintain an Effective Compliance Program,” promote a “culture of compliance,” and oversee entities they are contracting with to ensure compliance with Medicare program requirements.
In an emailed statement to The Center Square, AARP Vice President of External Relations Sarah Lovenheim said the agency does not comment on pending or possible investigations, but noted that it “provides quality control and oversight on behalf of AARP for AARP-branded products and services. ASI works with more than a hundred companies to make available to members benefits and discounts that address the needs of people ages 50 and older. We expect all providers to comply with all laws and regulations.
The recent allegations against UnitedHealth Group on its Medicare Advantage product are the latest partnerships AARP has had over the years to be questioned.
For example, AARP partnered with the health clinic chain Oak Street Health in 2022, which marketed its services to the group’s members. Just weeks after the deal became final, Oak Street faced a Justice Department civil investigation into its marketing tactics; the federal government questioned if it violated a federal law banning false claims for government payments. Oak Street denied any wrongdoing.
AARP’s is still marketing United’s Medicare Advantage plans on its website.
Health policy expert Mark Merritt said AARP must explain itself to customers.
“AARP must publicly assure seniors the allegations against United are false or explain why to endorse plans accused of defrauding Medicare,” Merritt said in a statement.
