AARP TO WORK WITH HMOS.Byline: Milt Freudenheim The New York Times In a move that could prompt millions of older Americans to join managed health plans, the American Association of Retired Persons American Association of Retired Persons: see AARP. will begin licensing its name to health maintenance organizations across the country later this year. The 33 million-member association, best known as a lobbying group for the elderly, is already a big player in the insurance business, endorsing selected auto and homeowner policies, and insurance that pays medical bills not covered by Medicare. In return, it receives substantial revenue from royalties and related income - $146 million in 1994, which provided 38 percent of its budget. The association said it would only deal with health organizations that met its standards on financial stability, commitment to quality, price and popularity with current members. A consulting firm, Health Benefits America, is screening hundreds of HMOs for the association. Among other criteria, the association will use standards that are being developed by the National Committee on Quality Assurance, a nonprofit group sponsored by managed-care companies and employers. The association will seek formal bids late in June or early in July, with the aim of entering into marketing contracts with one or more health organizations in each of 15 or 16 regional markets. ``Our name and logo would be associated with it,'' said Wayne Haefer, membership director of the association. The group will keep the health maintenance organizations under continuous review, he said, backed by the right to drop any that fail to measure up. For HMOs, the prospect of winning the association's endorsement is a mouth-watering opportunity. In a single stroke, they would gain access to a national brand name and to millions of potential customers, and benefit from the association's marketing prowess. The association will promote the health care organizations in mailings, in its national magazine, Modern Maturity, and other publications. And it will provide the HMOs with lists of its members and advice on ``how to talk with people of this age and needs,'' Haefer said. The federal government and dozens of big companies with rosters of retirees are already promoting health maintenance organizations as a way of controlling the costs of health care for the elderly; Medicare HMOs are among the fastest-growing types of managed care. But the push into managed care is fraught with risk for the nation's biggest membership association. AARP will be lending its name to businesses that at times limit or even refuse medical services, instead of just making sure that claims are paid. That could create a backlash in a constituency that generally has looked upon the association as a vigorous advocate for its interests. Putting the group's seal of approval on particular health organizations could ``raise questions about their ability to maintain their credibility as a neutral broker,'' said Bruce Vladeck, chief administrator of the federal Medicare program. ``Getting into that business is high-risk stuff,'' said Marilyn Moon, a researcher in the economics of Medicare at the Urban Institute in Washington. ``If some of these guys turn out to be bad actors, it will have an impact - as it should - on whoever endorses them.'' |
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