Why Has AARP Lost 150,000 Members?

By Robert Fredricks Posted in Health Insurance News

The well known insurance company, AARP, is now enjoying a hefty gain from the positive publicity it has received since openly supporting President Obama’s healthcare overhaul. Although AARP did lose 150,000 members for supporting the healthcare plan, it registered over 2,000,000 renewals and new members. Obviously a wise decision on the company’s part, AARP’s choice in endorsing healthcare reform gives the organization the dazzling veneer of selflessness and humanism. Indeed it is a bold move for an insurance company to support a healthcare package that could effectively decrease the market share for all insurance providers, however, in understanding the inevitability of healthcare reform AARP saw the oppotunity to take a chance on short run success.

Even though there is a lot of turmoil and misinformation surrounding the healthcare billl, political and social stress should be considered natural when dealing with an issue as important as a nation’s health. However, extremism on both sides of the bill only works to increase the amount of misunderstanding and distrust making the process very timely and drawn out. It is no wonder opposition to the bill was so strong at first but, like any issue that time is given for compromise, slowly and surely a solution is taking form.

AARP Gains from Loss

Not surprisely, there are over twenty million organizations that back the healthcare bill now, many of which are companies in the medical and insurance fields. Having a major insurance company like AARP endorse the healthcare reform package greatly increases the likelyhood of some sort of agreement being met very soon. However, we should not assume that AARP made such a stand and was so willing to sacrifice 150,000 members simply because it was the right thing to do. After all, AARP would not endorse something that the majority of its members and prospective members did not statistically approve of. So in all reality, it was more or less another strategic business move to increase profitability. Don’t hate the player, hate the game.

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