AARP Medicare Advantage plans are Medicare Advantage (Part C) health insurance plans operated by UnitedHealthcare and branded with the AARP name. AARP itself is not an insurance company. It’s an advocacy organization for people over 50 that licenses its name to UnitedHealthcare, which designs, administers, and sells the plans. The partnership has been in place for years, and UnitedHealthcare continues to offer AARP-branded Medicare Advantage, Medicare Part D, and supplemental plans under an ongoing agreement.
To enroll, you need to be signed up for both Medicare Part A (hospital coverage) and Part B (medical coverage). These plans then replace your Original Medicare coverage with a bundled alternative that typically includes extra benefits like dental, vision, and prescription drug coverage.
How the AARP and UnitedHealthcare Partnership Works
AARP’s role is essentially a brand endorsement. The organization vets and selects products it considers high-quality, then allows them to carry the AARP name. UnitedHealthcare handles everything on the insurance side: building provider networks, processing claims, setting premiums, and managing benefits. When you call customer service or visit a doctor through one of these plans, you’re dealing with UnitedHealthcare’s infrastructure. Tim Noel, CEO of UnitedHealthcare Medicare & Retirement, has described the arrangement as an ongoing collaboration, with UnitedHealthcare assuming fiduciary responsibilities for supplemental products as well.
Plan Types Available
AARP Medicare Advantage plans come in several structures, each with different rules about which doctors you can see and whether you need referrals.
- HMO (Health Maintenance Organization): You choose a primary care physician from the plan’s network, and that doctor refers you to specialists as needed. Care outside the network is generally only covered in emergencies.
- PPO (Preferred Provider Organization): You can see any provider, but you’ll pay less when you use doctors and hospitals within the plan’s preferred network. No referrals are needed for specialists.
- PFFS (Private Fee-for-Service): The plan determines how much it will pay providers and how much you owe. You can see any provider that accepts the plan’s terms.
- SNP (Special Needs Plan): Designed for people with specific chronic conditions, those who qualify for both Medicare and Medicaid, or those in certain institutional settings.
Most UnitedHealthcare non-special-needs HMO plans use a national network of more than 1.3 million healthcare professionals, which gives members access to in-network care across the country rather than limiting them to a single region.
What These Plans Cover
Every Medicare Advantage plan is required by federal law to cover at least everything Original Medicare covers, including hospital stays, doctor visits, and medically necessary services. Where AARP Medicare Advantage plans differentiate themselves is in the extras.
More than 97% of Medicare Advantage plans nationally now include dental, vision, and hearing benefits. Dental coverage typically ranges from preventive care like cleanings and exams to more comprehensive services like fillings, crowns, and root canals. Vision benefits generally cover eye exams and prescription glasses, though plans may limit how often you can visit an optometrist or which frames are covered. Hearing benefits usually include exams and hearing aids, with the level of coverage varying by plan and location.
The more comprehensive the service, the higher your out-of-pocket cost tends to be. A routine cleaning will cost you far less than a crown, even when both are covered.
Prescription Drug Coverage
Most AARP Medicare Advantage plans bundle prescription drug coverage (Part D) directly into the plan. Drugs are organized into a tiered formulary, which groups medications based on cost. A typical structure has five tiers:
- Tier 1 (Preferred Generic): The most commonly used generic drugs, with the lowest copays.
- Tier 2 (Generic): Other generic drugs at a moderate copay.
- Tier 3 (Preferred Brand): Common brand-name drugs and some higher-cost generics, with a higher copay.
- Tier 4 (Non-Preferred): Brand-name and generic drugs not on the preferred list, with the highest copays.
- Tier 5 (Specialty): Very high-cost or unique medications, typically charged as a percentage of the drug’s price rather than a flat copay.
Before enrolling, it’s worth checking whether your specific medications appear on the plan’s formulary and which tier they fall into. Moving from a Tier 1 generic to a Tier 4 non-preferred drug can mean a significant jump in what you pay each month.
Costs and Out-of-Pocket Limits
One of the biggest draws of Medicare Advantage is the yearly cap on out-of-pocket spending, something Original Medicare does not offer. In 2025, the federal maximum is $9,350 for in-network services and $14,000 for in-network and out-of-network services combined. Many plans set their limits well below the federal cap. The average out-of-pocket limit for Medicare Advantage enrollees in 2025 is about $5,320 for in-network care. Once you hit your plan’s limit, the plan pays 100% of covered costs for the rest of the year.
As for monthly premiums, 76% of Medicare Advantage enrollees in 2025 pay no additional premium beyond their standard Part B premium. For the roughly 24% who are in plans that do charge an extra premium, the average is $53 per month. The enrollment-weighted average across all plans, including the zero-premium ones, works out to just $13 per month.
Fitness and Wellness Perks
Many AARP Medicare Advantage plans include the Renew Active program at no extra cost. This benefit provides a free gym membership at a fitness location you select from a large national network. Beyond gym access, the program includes AARP Staying Sharp, an online brain health program with cognitive assessments, lifestyle check-ins, videos, and interactive challenges designed to support mental sharpness. Renew Active also connects members with local group classes and activities like walking groups, pickleball, and yoga.
OTC Credits and Other Extras
Some AARP Medicare Advantage plans come with credits you can use to buy everyday health-related products. These credits are loaded onto a UnitedHealthcare UCard either quarterly or monthly, depending on your specific plan. The dollar amounts vary by plan and location.
Eligible purchases with OTC credits include allergy and cold medicine, pain relievers, first aid supplies, vitamins, stomach remedies, incontinence products, and tobacco cessation aids. Certain plans expand these credits to cover healthy groceries like fruits, vegetables, meat, dairy, bread, and cereals. Some plans even allow credits toward utility bills, covering electric, gas, water, internet, and phone service. These broader benefits are most common in plans designed for people with lower incomes who qualify for both Medicare and Medicaid.
How to Compare Plans in Your Area
AARP Medicare Advantage plan details, including premiums, copays, covered drugs, provider networks, and extra benefits, vary significantly by ZIP code. Two people in different states could both have “AARP Medicare Advantage” plans with very different cost structures and benefit packages. The most reliable way to compare is to enter your ZIP code, current medications, and preferred doctors on the UnitedHealthcare or Medicare.gov plan finder tools during open enrollment, which runs from October 15 through December 7 each year. You can also make changes during the Medicare Advantage Open Enrollment Period from January 1 through March 31, though your options are more limited during that window.