AARP Services Inc. offers: Medicare supplemental health insurance, discounts on prescription drugs and consumer goods, entertainment and travel packages, long-term care insurance and automobile, home and life insurance.[2] It provides quality control over the products and services made available by AARP-endorsed providers. According to AARP's 2008 Consolidated financials, it was paid $652,000,000 in royalties from insurance companies that sold products referred by AARP. AARP also received an additional $120,000,000 for the ads placed in its publications.[3]
According to critics, until the 1980s AARP was controlled by Mr. Davis, who promoted its image as a non-profit advocate of retirees in order to sell insurance to members.[5] After a lengthy competitive bidding process, AARP shifted the insurance contracts made available to members to Prudential in 1980. In the 1990s, the United States Senate investigated AARP's non-profit status, with Republican Senator Alan Simpson, then chairman of the United States Senate Finance Subcommittee on Social Security, Pensions, and Family Policy, questioning the organization's tax-exempt status in congressional hearings. According to Charles Blahous, the investigations did not reveal sufficient evidence to change the organization's status,[6] though in an interview years later by the Des Moines Register, Senator Simpson remained "troubled by AARP's practices", calling AARP "the biggest marketing operation in America and money-maker" and an organization whose practices are "the greatest abuse of American generosity I witnessed in my time in the U.S. Senate."
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