After a Senate inquiry found evidence of deceptive marketing, AARP has hired an outside investigator to look into sales of some of its health insurance products.
AARP, which has partnered with UnitedHealth Group in the sale of the policies, has voluntarily suspended sales of the plans, which pay fixed cash benefits for selected services.
Insurance plans sold by UnitedHealth and carrying the AARP brand have been criticized for suggesting they offer comprehensive coverage when, in fact, they do not provide basic protection against high medical costs. This could leave policyholders vulnerable to debt incurred by intensive medical care, said Sen. Charles E. Grassley (R-IA).
The investigation will be conducted by Elizabeth Rowe Costle, who held the position of insurance commissioner of Vermont from 1992 to 2003. At issue are insurance plans that were sold by UnitedHealth and carry the AARP brand.
