Get Your Free Guide to AARP and Insurance Options

Understanding AARP Membership and What It Offers

AARP is a nonprofit organization that serves adults age 50 and older. Founded in 1958, AARP has grown to represent millions of members across the United States. The organization focuses on health, work, retirement, and financial security for older adults. While many people associate AARP primarily with insurance, the organization actually provides a broad range of information and resources across multiple areas of life.

AARP membership costs $16 per year for a single membership or $27 for a couple. This membership fee gives you access to the organization's publications, website resources, and discounted products and services from partner companies. The organization publishes AARP Magazine and the AARP Bulletin, which reach millions of households monthly. These publications contain articles about health, finances, caregiving, and lifestyle topics relevant to older adults.

The organization operates in all 50 states plus Washington, D.C., and Puerto Rico. Each state has its own AARP office with staff who work on state-level policy issues. This means there are resources and information tailored to your specific state's programs and regulations. For example, Medicare rules can vary slightly by state, and AARP provides state-specific information about these variations.

AARP also offers online resources, including webinars, articles, and interactive tools. The AARP website receives millions of visitors each month seeking information about topics like Social Security, Medicare, financial planning, and health conditions. Many of these resources are free and do not require membership. The organization partners with financial institutions, healthcare providers, and other companies to offer discounted rates to members on products ranging from car insurance to travel services.

Practical Takeaway: Before exploring insurance options through AARP, understand that AARP itself is an organization with multiple functions. Some resources are free to the public, while others require membership. Some insurance products are endorsed by AARP but sold by other companies. Knowing this distinction helps you understand what you're accessing and what it costs.

Medicare Basics and How AARP Provides Information About It

Medicare is the federal health insurance program for people age 65 and older, regardless of income or health status. It is administered by the Centers for Medicare & Medicaid Services (CMS), which is part of the U.S. Department of Health and Human Services. As of 2024, Medicare covers approximately 67 million people. Understanding Medicare is essential for older adults because it is the primary health insurance program available to most people over 65.

Medicare has four main parts. Part A covers hospital insurance, including inpatient hospital stays, skilled nursing facility care, hospice, and home health services. Part B covers medical insurance, including doctor visits, outpatient care, medical equipment, and preventive services. Part D covers prescription drugs. Medicare Part C, also called Medicare Advantage, is an alternative way to receive Parts A, B, and D coverage through a private insurance company.

AARP provides educational information about how each part of Medicare works, what is covered, and how much different services might cost. The organization explains concepts like deductibles, copayments, and coinsurance—terms that can confuse people new to Medicare. For example, Medicare Part A has an annual deductible of $1,728 for inpatient hospital stays in 2024. Part B has a monthly premium (the amount you pay each month) and an annual deductible of $240 in 2024. These amounts change yearly, and AARP resources help you understand the current year's figures.

AARP also explains important Medicare timelines. When you turn 65, there is an initial enrollment period—a seven-month window that includes your birth month, the three months before it, and the three months after it. Understanding this timeline matters because missing it can result in permanent penalties on your premiums. AARP's guides walk through when you should enroll, what happens if you delay, and how late enrollment penalties work.

The organization provides information comparing Original Medicare (Parts A and B) with Medicare Advantage plans. Original Medicare allows you to see any doctor who accepts Medicare, while Medicare Advantage plans typically require you to use doctors and hospitals within their network. There are trade-offs between flexibility and cost with each option, and AARP materials help you understand these differences so you can make an informed decision based on your own situation.

Practical Takeaway: Start learning about Medicare before you turn 65. AARP's Medicare information helps you understand the different parts, coverage details, and important enrollment deadlines. Knowing these basics prevents costly mistakes and helps you choose coverage that matches your healthcare needs and budget.

Supplemental Insurance (Medigap) and Long-Term Care Insurance Options

Many people with Original Medicare choose to buy supplemental insurance, also called Medigap. This is private insurance that covers costs that Original Medicare does not pay, such as copayments, coinsurance, and deductibles. It is important to understand that Medigap is different from Medicare Advantage. Medigap works alongside Original Medicare to fill coverage gaps, while Medicare Advantage replaces Original Medicare with a different insurance plan.

There are ten standardized Medigap plans, labeled A through N. Each plan covers a specific set of benefits, and the benefits are the same regardless of which insurance company sells the plan. The main difference between companies is price. Plan F was historically the most popular because it covered nearly all out-of-pocket costs, but it is no longer available to people who became newly eligible for Medicare after January 1, 2020. For those new to Medicare, Plan G is now the most comprehensive option available.

AARP provides detailed comparisons of Medigap plans, explaining what each one covers and what you would pay out-of-pocket with each option. For example, Plan A is the least expensive but covers fewer services than Plan G. Choosing between plans involves understanding your expected healthcare use, your budget, and your preference for out-of-pocket costs versus monthly premiums. AARP's materials help you think through these trade-offs.

Long-term care insurance is a separate product that helps pay for extended care services not covered by Medicare. These services include nursing home care, assisted living, and in-home care. Medicare covers only short-term skilled nursing care following a hospital stay—typically up to 100 days per benefit period. Long-term custodial care, which is help with activities like bathing and dressing, is not covered by Medicare. The average cost of nursing home care is approximately $100,375 per year, and assisted living averages around $54,000 per year, according to 2023 data. These costs can quickly deplete savings.

AARP provides information about long-term care insurance, including how policies work, what they cover, and typical costs. The organization explains that long-term care insurance premiums depend on your age when you buy the policy, your health status, and the specific coverage you choose. Premiums can range from a few hundred to several thousand dollars per year. AARP materials help you consider whether long-term care insurance makes sense for your situation based on your assets, family situation, and preferences about care.

Practical Takeaway: Medigap and long-term care insurance serve different purposes. Medigap fills gaps in Original Medicare coverage. Long-term care insurance protects against costs of extended care services that Medicare does not cover. Understanding the difference helps you determine which types of coverage, if any, are relevant for your circumstances.

Health Insurance Options Before Age 65

Not everyone waits until 65 to retire. People who retire before Medicare begins sometimes struggle to find affordable health insurance. Understanding your options before age 65 is important for planning retirement. AARP provides information about several pathways to health insurance for people in their 50s and early 60s.

The Affordable Care Act (ACA), passed in 2010, created health insurance marketplaces where individuals can purchase coverage. These marketplaces operate in every state, though some states run their own marketplace while others use the federal marketplace at Healthcare.gov. The ACA prohibits insurance companies from denying coverage or charging more based on pre-existing health conditions. For people retiring before 65, this means you cannot be rejected for insurance due to past health problems.

The ACA also provides subsidies (financial assistance) to reduce insurance costs for people with incomes between 100% and 400% of the federal poverty level. In 2024, the federal poverty level for a single person is $14,580, meaning subsidies may be available to individuals with