AARP is the largest advocacy group for people over the age of 65 in the United States. You can even get health insurance bearing the famous AARP name. So, how does AARP health insurance work?
AARP Health Insurance
AARP Health Insurance Is Sought After In Many States
The truth of the matter is, AARP health insurance doesn’t technically exist. Insurance companies that are approved to administer Medicare are actually the insurers. They pay a fee to AARP to attach the well-known name. So, if you have an AARP health insurance policy, AARP is benefiting from your premiums. In fact, AARP doesn’t recommend any one insurance company. It is your choice and your responsibility to choose the right insurance coverage for your needs.
Medicare Advantage with AARP
Medicare Advantage, or Medigap insurance is delegated by the federal government to a number of well-known insurance companies such as Humana, Aetna, United Health Care, and BCBS, to name a few. If the company from which you purchase coverage pays royalties to AARP, then you will have AARP health insurance in name only, but through a well-known insurance company. This is important because larger insurance companies have better financial security.
AARP Health Allows Members To Enjoy Aetna Benefits
Through AARP health insurance, you’ll have access to Medicare Advantage or, if you so choose, Medicare Part D, which is the prescription drug plan. Part D is also included in Medigap, so you don’t need both.
Benefits from AARP Health Insurance
Having a membership with AARP does get you discounts on many medical goods and services. This is separate and apart from AARP health insurance, though. With AARP membership, you’ll find that you are eligible for discounts at many gyms, health food stores, and medical supply stores. You’ll also have access to dental, vision and hearing insurance and discounts. Prescription discounts are also available to members of AARP, and you can get the ADT companion service, too. So, there are many medical-related benefits to being a member of AARP, even if your AARP health insurance is actually BCBS, or some other company.
How Does AARP Health Insurance Work?
So, the way AARP health insurance works is the same as any other insurance policy. The agent for the insurance company takes your information and looks through the plans available in order to write you a policy that you can afford and from which you can benefit. If you are eligible for Medicare, you’ll probably have one of the 12 Medigap policies available.
Medigap through AARP Health Insurance
By federal law, Medigap offers 12 different insurance. About ½ of them are HMO type policies that require strictly network providers, or some variation thereof, and the other ½ are FFS indemnity policies.
Your insurance agent will look at your budget and medical needs and advise you on which type of policy will be best for you. For instance, if you are very healthy, with no maintenance medications, an FFS policy may be the best for you. You will have medical coverage for any catastrophic incident, but your premium will be low. Now you have a better idea of how AARP health insurance works.
