A Texas couple has filed a federal class action against AARP in the District of Columbia, alleging the group used misleading marketing to sell its health insurance policies.
The suit, filed yesterday in the U.S. District Court for the District of Columbia, claims that James and Allison Halpern purchased an AARP Medical Advantage Plan in March 2008, after receiving an advertising packet touting it as a “primary insurance plan.” The couple dropped their old health insurance policy. But after Allison Halpern was diagnosed with breast cancer, they learned their new plan only provided limited coverage, and would not pay for the cost of a crucial surgery.
According to the complaint, AARP’s advertising materials did not indicate that the health plan only provided limited coverage. AARP suspended sales of the policies earlier this year when Sen. Chuck Grassley (R-Iowa) opened a congressional investigation into their marketing.
“AARP has preyed upon Plaintiffs and thousands of Americans over age 50 by luring unsuspecting consumers in need of affordable health care to enroll in AARP’s health insurance program,” the complaint states.
The suit accuses the company of violating the D.C. Consumer Protections Procedure Act. It argues the D.C. court has jurisdiction because AARP is located in the District.
An AARP spokesman declined to comment.
A lawyer for the Halperin’s, Jerome Noll, of counsel with White Plains, New York-based Meiselman, Denlea, Packman, Carton & Eberz, said he knew of one other class action filed against AARP. That suit, also filed in D.C., targets United Healthcare as well, which partnered with AARP to sell the policies. A legal team from Venable including partner William Coston represents AARP in that case.
“We believe there’s a stronger case against AARP,” Noll said. “We allege that AARP’s marketing was deceptive and therefore in violation of the D.C. consumer protection act. [The Halperns] did not receive marketing materials from United Healthcare.”
Larry Rubinoff is right on with his conclusions as to what AARP is and what it isn't. It allows the use of its name, which has tremendous recognition with seniors, and then when members, like me, complain about the service from for example United Health, or complain about the lack of knowledge of United Health's telephone customer service personnel and their inability to answer more than the simplest question, AARP bugs out by claiming it has no ability to control what the insurance company does. The most basic commercial licensing agreement gives the licensor some control and supervision, but AARP doesnt want to do anything for the bucks it gets and then handsomely pays its executives. So what else is new??? We deserve more from the national organization which supposedly is to serve our interests as seniors. Or is it? Stephen R Steinberg
Posted by: STEPHEN R. STEINBERG | November 10, 2009 at 08:55 PM
It is so sad to see that America condones the exploitation of its senior citizens.
AARP has always billed itself as an organization that represents and fights for the rights of senior's. It has also been evident throughout the years and the amount of "junk" mail promotions from them that they are no more then a marketing compnay.
Their main effort is to "sell" products to seniors. They are one huge mailing list company that gets paid and/or gets commissions on products they sell.
Senior's rights and welfare are second only to their primary purpose of making money as a neo social rights - consumer advocacy agency.
They are a FOR PROFIT only organizaiton masquerading as an advocacy group.
My membership is up for renewal. I will renew just to continue to get their solicitations and to save them for future use against them to aid in cases like the one here.
Shame on you AARP.
Posted by: Larry Rubinoff | November 10, 2009 at 05:49 PM