AARP Suspends Marketing and Sales of Limited Coverage Health Plan in Response to Grassley Questions

Press Release

AARP Suspends Marketing and Sales of Limited Coverage Health Plan in Response to Grassley Questions

Senator Chuck Grassley commented on the announcement made today by the AARP (copied below) that it will suspend marketing and sales of fixed indemnity products for a comprehensive review of the questions raised by Senator Grassley in a letter sent Monday to the AARP. A copy of Senator Grassley's news release is below, along with posting information about his Grassley letters to AARP and state insurance commissioners and copies of AARP marketing materials for the plan in question. Senator Grassley is Ranking Member of the Committee on Finance, which is responsible for health care policy.

Senator Grassley's statement: "The marketing of this plan demands a comprehensive review, and the AARP needs to do right by the more than one million people who may have bought this AARP product because of the misleading marketing."

AARP RESPONDS TO SENATOR GRASSLEY, CONDUCTS COMPREHENSIVE REVIEW OF MARKETING OF FIXED BENEFIT INDEMNITY PRODUCTS

"Ensuring the protection and keeping the trust of our members drives all that we do at AARP."

AARP CEO Bill Novelli issued the following response to a letter from Senator Charles Grassley containing questions about the marketing and sales of several AARP branded fixed benefit indemnity plans administered by UnitedHealthcare.

"Ensuring the protection and keeping the trust of our members drives all that we do at AARP."

"Based on Senator Grassley's letter we have launched a comprehensive review of the issues he raised. I have personally assured Senator Grassley that we are moving quickly to respond to his questions. We are also taking the following steps:

"We are engaging an independent expert to review the marketing and sales of the fixed benefit indemnity products and make recommendations as warranted; and

"AARP and UnitedHealthcare have agreed that the marketing and sales of these fixed benefit indemnity products will be voluntarily suspended as soon as possible, pending the conclusion of our review. Current members of the fixed benefit indemnity plans will continue to be served by the program.

"We have extremely high standards for the provider products that carry the AARP name. No one cares more about helping people stay healthy and secure as they age than AARP. Our organization was founded to serve older Americans and help them get access to the health care they need. That mission continues to drive this organization today through our public interest work, our membership services and our leadership in the marketplace."

AARP is a nonprofit, nonpartisan membership organization that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. AARP does not endorse candidates for public office or make contributions to either political campaigns or candidates. We produce AARP The Magazine, the definitive voice for 50+ Americans and the world's largest-circulation magazine with over 34.5 million readers; AARP Bulletin, the go-to news source for AARP's 40 million members and Americans 50+; AARP Segunda Juventud, the only bilingual U.S. publication dedicated exclusively to the 50+ Hispanic community; and our website, AARP.org. AARP Foundation is an affiliated charity that provides security, protection, and empowerment to older persons in need with support from thousands of volunteers, donors, and sponsors. We have staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.

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