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