AARP doubles health insurance offerings


The AARP announced on Monday that it has signed seven-year contracts with Aetna Inc. (NYSE: AET) and UnitedHealth Group Inc. (NYSE: UNH) that will double the organization's branded HMO offerings. This looks like a big victory for consumers, as the AARP will be able to use its leverage to push for better quality of care standards.

According to the USA Today, Aetna and UnitedHealth will risk losing incentive payments if they don't provide the maximum recommended care for diabetic patients, for example.

The AARP will be using the proceeds to fund its lobbying efforts for health care reform, and will be launching a 500 million dollar campaign to educate people about the health care system. The AARP has tremendous clout, and studies show that it is the most powerful organization in the United States.

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