AARP Deceptive Marketing Under Fire

Earlier this month, Senator Grassley initiated an inquiry into deceptive marketing practices of certain health insurance products sold by AARP. The insurance plans at issue all limit the maximum amount the insurance company will pay. These limited benefit insurance policies are backed by UnitedHealth Group, and include AARP Medical Advantage, Essential Plus and Hospital Indemnity Plan. As a result of Senator Grassley’s investigation, AARP and UnitedHealth Group have suspended sales of these policies while a formal investigation occurs. Elizabeth Rowe Costle has been asked to conduct the investigation into AARP’s deceptive marketing of these fixed benefit policies. The investigation does not involve any prescription drug plan or Medicare Advantage plans that are only endorsed by AARP.

AARP, an organization that claims to act for its members, has in fact been selling the trusting public policies through UnitedHealth that promise much more than they deliver.

The policies are sold to those over the age of 50, but not yet eligible for Medicare, under the names of AARP Medical Advantage, Essential Plus, and Hospital Indemnity Plan.

As Senator Charles E. Grassley, Republican from Iowa, has said, the marketing is often misleading because it suggests to policy holders that they have comprehensive coverage:

In fact, there's no basic protection against high medical costs. The products may leave consumers seriously in debt if they need intensive medical care.

We are presently representing about 200 retirees who have been cheated out of their long term medical care by their former Employer, Philips Electronics. We have learned, first hand, how devastating the loss of health insurance can be, and how difficult it can be to find coverage, especially for those between the ages of 50 and 65.

We are currently investigating cases for AARP members who have purchased UnitedHealth Insurance products through AARP and are between the ages of 50 and 65. There is no cost to call our toll free number. We believe that this type of deceptive practice can best be addressed by a class action, where many people unite to take on the big business that preys on those most vulnerable.

Call us toll-free at 1-888-841-9623 to talk about your experience with one of these limited benefit insurance policies sold by AARP.