Congress Finds Evidence of Deceptive Marketing of AARP's Health Insurance Products
A Senate inquiry has found evidence that AARP’s health insurance products were deceptively marketed to its members. At issue are insurance plans that were sold by UnitedHealth Group and carry the AARP brand. According to the New York Times, more than a million people have bought the policies, which have names like AARP Medical Advantage, Essential Plus and Hospital Indemnity Plan. The Senate Finance Committee found the marketing of these health insurance policies misleading because it suggested that they offered comprehensive coverage. In fact, the policies pay fixed cash benefits for selected services, often times much less than consumers had been promised or expected.
For example, AARP’s Medical Advantage plan pays a maximum of $5,000 for surgical procedures that usually cost many times that amount. A consumer guide to this plan issued by AARP states that a Medical Advantage insurance policy “can be a real lifesaver for early retirees, part-time workers or people who just need to supplement their current health insurance.” Thus, uninsured members of AARP have purchased these policies thinking that they provide comprehensive medical coverage, when in fact they do not.
In response to the Congressional inquiry, AARP has suspended sales of the health insurance policies and has hired an outside investigator to look into sales of these policies.
If you have a purchased a limited-benefit health insurance policy through AARP, please contact us to discuss your legal options.