About AARP Health Insurance in Texas

When the American Association for Retired People (AARP) was launched decades ago, it proposed an ambitious goal of supporting people over the age of 50 in every aspect of the aging process. That mission has grown exponentially over time and one of the most successful entrepreneurial endeavors AARP has undertaken is the role of health insurance broker. Formerly accessible only as a perk of membership, health coverage through AARP is now available to both members and those not affiliated with the nonprofit. Like all regulated industries, insurance laws are set by the state but Texas has the right to approve the sale of health insurance through a third party like AARP. This article examines the current status of AARP health coverage as offered in that state.

History

In 2003, one of eight Texas residents received Social Security benefits and Medicare, yet a large majority of recipients believed they faced an uncertain retirement despite these entitlements. This concern was shared by members of both the Hispanic and non-Hispanic community - many of whom admitted that these entitlements were their sole means of support. As Medicare legislation was updated and revised, steps were taken to offer insurance bridges to seniors in all 50 states. AARP moved into the Texas market by partnering with Prudential Insurance to offer a standard accompaniment of health coverages. Substitutions for Parts A and B, gap coverage and Part D plans to cover prescription costs. Prudential continues to administer these plans for Texans enrolled in Social Security and Medicare.

Types

In the spring of 2007, Aetna Insurance Company in association with AARP decided to go after an under-served part of the Texas health care market. Because the Prudential partnership with AARP to serve the post-65-year-old health insurance market was already established, Aetna proposed the same type of coverage for Texans between the ages of 50 and 64. Aetna believed this to be a viable market and conducted a research study that found 50 to 64-year-olds were woefully under-insured because they were allocating a majority of their cash to retirement savings plans. What if Texans between the ages of 50 and 64 could get individual health care coverage at a group rate? Aetna approached AARP about partnering with them and that alliance launched pre-retirement health coverage for Texas seniors in 2008. The agreement, extending to 2015, gives AARP the right to sell health insurance underwritten by Aetna to 50-plus Texans for the next seven years.

Benefits

In a Wharton Journal Spectator article published when the Aetna/AARP partnership was announced, the newspaper took the rare step of endorsing and encouraging this marriage. Editors urged the Texas Sunset Commission, the governmental entity evaluating senior-focused programs, to support the partnership. The TSC felt the plan would strengthen the state's health care system for seniors who, in many cases, were equally in need of special coverage at group rates but were, in some cases, a decade away from being able to get it. While a new initiative, this creative partnership is expected to give AARP administrators an opportunity to see if the Texas experiment is worth exploring in other states.

Warning

Medical problems tend to increase after the age of 50, so having longer periods of coverage for senior Texans makes good sense. Affordable coverage, administered by respected companies like Prudential, Aetna and AARP, can help Texans get early treatment for the most prevalent concerns they must face, including memory loss, physical disabilities, hearing and vision impairment.

Potential

Each year, the senior population increases. By partnering with AARP on innovative new plans like the one initiated by Aetna, Texas expects to move through the beginning of the 21st century with its health insurance bases covered for the people who need it most. Benefits of this expanded coverage are many and evident: Texans over 50 no longer need to pay outrageous rates for individual health care policies that may be spotty, subject to multiple preconditions and outright cancellation following heavy medical expenses. Additionally, affordable health plans mean that senior Texans need not be reticent about seeking preventative services because they simply can't afford them.