Class Claims AARP Bilking Seniors Through Insurance Commissions

[douglas9]

A class action claims AARP is pocketing millions by duping unsuspecting seniors and disabled individuals into paying artificially inflated prices for Medicaid supplemental health insurance policies.

In a federal complaint filed in Fort Pierce, Florida on Thursday, lead plaintiff William Sacco claims AARP is collecting unconscionable commissions on insurance policies it sells in partnerships with co-defendants UnitedHealth Group Inc. and UnitedHealthcare Insurance Company.

Sacco, who is represented by Scott Bursor from Bursor & Fisher PA, claims that AARP refers to these commissions as “royalty” payments for the use of its intellectual property, and fails to disclose that they are collected by charging seniors and disabled individuals an additional amount over and above the insurance premium paid to UnitedHealthcare.

“Defendants’ motive to term a commission payment a “royalty” is two-fold: it allows AARP to avoid oversight by insurance regulators, and it allows AARP to avoid paying taxes on the income it generates through insurance sales,” Sacco says.

According to the complaint, AARP is violating the Florida Insurance Code because even though it does not have a license to operate as an insurance agent in Florida, it still acts as a “de facto agent” for UnitedHealth by selling and renewing “AARP Medigap” insurance policies in exchange for a 4.95 percent commission.

https://www.courthousenews.com/class-claims-aarp-bilking-seniors-through-insurance-commissions/

[KT2000]

1. I have other complaints

about AARP as well.
I became a member so I could get their insurance. The cost is not a lot but I get membership renewals all year long, even after I call and verify it is not due. I wonder how many seniors who are not tracking well send in their membership several times a year.

A friend found that AARP had signed her up for drug coverage she did not want. She could not get them to stop and when she went to our state legislator for help, she found others were having the same problem.

[SCantiGOP]

3. Damn right!!

Years ago, I started a list of all of my subscriptions - magazines, AAA, contributions to ACLU, ETV, Planned Parenthood, etc - and found that the rule was to start sending out renewal notices about half way through the term.
I noticed that AARP was one of the worst.

[Citrus]

2. AARP has always...

AARP has always been nothing more than an insurance sales organization. They haven't done any effective lobbying in a very long time and even when they did, it was minimal and designed for PR. I've never understood why people haven't paid more attention and avoided this long-time scam. ::sigh::