AARP Orders Investigation Concerning Its Marketing

November 19, 2008

After a Senate inquiry found evidence of deceptive marketing, AARP, the lobby for older Americans, has hired an outside investigator to look into sales of some of its popular health insurance products.

AARP and UnitedHealth Group, one of the nation’s largest insurers, have voluntarily suspended sales of the policies, which pay fixed cash benefits — often much less than consumers had expected — for selected services.

The investigation will be conducted by Elizabeth Rowe Costle, who was the insurance commissioner of Vermont from 1992 to 2003, when Howard Dean was governor.

At issue are insurance plans that were sold by UnitedHealth and carry the AARP brand. More than a million people have bought the policies, which have names like AARP Medical Advantage, Essential Plus and Hospital Indemnity Plan.

Read Article: New York Times

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