• The Wall Street Journal (subscription required), Tuesday, April 17, 2007 11:15 AM

The 38 million-member AARP is expanding a longstanding contract with UnitedHealth Group to market private, comprehensive Medicare plans--known as Medicare Advantage--under the AARP name. The group has also struck a new partnership with Aetna to design, underwrite and administer a range of health plans for consumers under 65.

The deals illustrate how providing health care for older Americans has become a big business, even as AARP tries to remain a consumer health advocate for its members. They are also a coup for both insurers.

AARP executives say the deals will help them reach their target of providing health insurance products to roughly 14 million people by 2014, up from 7 million today. AARP expects to generate some $4.4 billion in health care-related royalties over the next seven years, $1.5 billion more than its previous projections.

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