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Old 12-26-2013, 04:14 PM
 
15,546 posts, read 21,498,284 times
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If you have Medigap coverage through United HealthCare, you may be interested in knowing about a class action lawsuit alleging that AARP made $704 million last year in tax-free kickbacks from Medigap policies that it sold to seniors.

The lawsuit charges that "AARP defrauds senior citizens of millions of dollars by adding illegal commissions to their health insurance bills, using an 'elaborate scheme' that also allows it to avoid taxes on the commissions it receives. The suit, filed on behalf of lead plaintiff John Milton Peacock, also names the nation's largest health insurer, UnitedHealthCare Insurance Co, according to Courthouse News Service."

The suit also states that the payments to AARP are "actually a percentage of premium commission that is charged to unsuspecting seniors and the disabled in addition to their insurance premium paid to UnitedHealth for coverage".


Lawsuit: AARP medigap plans defraud seniors
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Old 12-26-2013, 04:28 PM
 
Location: Ponte Vedra Beach FL
14,628 posts, read 19,144,554 times
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And this is supposed to benefit those of us with AARP/UHC Medigap policies exactly how? The lawyers will make millions - and we'll all get checks for $5.32 ? Robyn

P.S. My husband and I have dealt with AARP UHC Medigap policies (both for ourselves and our parents in 2 different states) for 20+ years now - and the company is excellent IMO. Perhaps as a result of AARP vetting/oversight (I don't know - but I'm willing to pay a few extra dollars/month for the service we get perhaps because we're a part of a large purchasing group - as opposed to being on our own).
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Old 12-26-2013, 04:30 PM
 
15,546 posts, read 21,498,284 times
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Quote:
Originally Posted by Robyn55 View Post
And this is supposed to benefit those of us with AARP/UHC Medigap policies exactly how? The lawyers will make millions - and we'll all get checks for $5.32 ? Robyn


No one's forcing you to be part of the litigation. If you think it's not worth your time, then either dont bother with it or file to be excluded.

Last edited by TFW46; 12-26-2013 at 04:46 PM..
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Old 12-26-2013, 04:45 PM
 
15,546 posts, read 21,498,284 times
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Quote:
Originally Posted by Robyn55 View Post
My husband and I have dealt with AARP UHC Medigap policies (both for ourselves and our parents in 2 different states) for 20+ years now - and the company is excellent IMO. Perhaps as a result of AARP vetting/oversight (I don't know - but I'm willing to pay a few extra dollars/month for the service we get perhaps because we're a part of a large purchasing group - as opposed to being on our own).

That's good to know. So I presume that you'll tear up any check you receive as a result of this lawsuit?

Apparently AARP gets a commission strictly for marketing the Medigap policy to seniors. I havent read anything that would make me think AARP has any oversight responsibility.

I've always been under the impression AARP sells its name/endorsement to the highest bidder, not the company/product that will most benefit seniors.
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Old 12-26-2013, 04:59 PM
 
Location: Ponte Vedra Beach FL
14,628 posts, read 19,144,554 times
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Quote:
Originally Posted by TFW46 View Post
That's good to know. So I presume that you'll tear up any check you receive as a result of this lawsuit?

Apparently AARP gets a commission strictly for marketing the Medigap policy to seniors. I havent read anything that would make me think AARP has any oversight responsibility.

I've always been under the impression AARP sells its name/endorsement to the highest bidder, not the company/product that will most benefit seniors.
I think the largest check I ever got as a result of litigation of this type was about $25.

And once - when I got totally PO'd at a securities class action where I was a member of the class - I filed an amicus brief opposing the attorneys' fees because the lawyers were supposed to get a ton - and the class members almost nothing. I won - and pissed off a lot of lawyers - cost them millions in attorneys' fees .* Note that I am a lawyer - but was retired by then. Didn't have to make friends with anyone.

BTW - are you on Medicare? Do you have a Medigap policy? If so - from what company - and do you like that company? Robyn

*I actually paid out of pocket to attend the court hearing and argue my side of the case in front of a judge I'd known for decades. Of course - that hearing was only 300 miles away - in Miami. Don't know if I would be willing to pay for a trip thousands of miles away.
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Old 12-26-2013, 06:41 PM
 
15,546 posts, read 21,498,284 times
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Originally Posted by Robyn55 View Post
IBTW - are you on Medicare? Do you have a Medigap policy? If so - from what company - and do you like that company? Robyn

I am and I do. My Medigap policy is with United American and it's through my former company's retirement program. I do like it very much. It's actually the Medigap F policy and the cost is $100/month. I hired an independent insurance agent to compare it with all other available policies and he couldnt find a better, more cost-effective one.

If I didnt have that, I'd go with Blue Cross Blue Shield -- again with the F policy.


And I've been a member of several class action lawsuits. I was a plaintiff in one. I've received thousands of dollars in settlements in a couple of them and hundreds of dollars in several others.
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Old 12-26-2013, 06:45 PM
 
48,508 posts, read 88,602,322 times
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Quote:
Originally Posted by Robyn55 View Post
I think the largest check I ever got as a result of litigation of this type was about $25.

And once - when I got totally PO'd at a securities class action where I was a member of the class - I filed an amicus brief opposing the attorneys' fees because the lawyers were supposed to get a ton - and the class members almost nothing. I won - and pissed off a lot of lawyers - cost them millions in attorneys' fees .* Note that I am a lawyer - but was retired by then. Didn't have to make friends with anyone.

BTW - are you on Medicare? Do you have a Medigap policy? If so - from what company - and do you like that company? Robyn

*I actually paid out of pocket to attend the court hearing and argue my side of the case in front of a judge I'd known for decades. Of course - that hearing was only 300 miles away - in Miami. Don't know if I would be willing to pay for a trip thousands of miles away.
That is what you have to expect in a class action suit; you just wait for check. The lawyer probably took their I over like 7 years to avoid taxes on single payment.
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Old 12-26-2013, 10:14 PM
 
Location: Native Floridian, USA
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I have a client who has several trusts and it has lots of stocks and bonds within the trust. He has been a member of several class action lawsuits. We/my office would spend some time gathering information to be a member of the action. We charged him by the hour to compile the info and most often the award was a fraction of the cost of gathering the info. We certainly did not charge him for the actual time spent as he is a friend, as well as, a client. So we all lost except the lawyers. My client said not to file anymore of them and we haven't.

He got screwed really bad on the bonds with General Motors. Of course, the unions made out very well. But, he didn't feel it was worth the time and effort to be a part of the class action suit after his bonds became worth NOTHING. It was throughing good money after bad.......

These lawyers should not be allowed to make the money they do from these suits.

I have medigap with AARP/UHC, Plan J, which is no longer offered but I have stayed in Plan J. I don't like AARP as I do think they are shills for the federal government, regardless of how they posture otherwise.
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Old 12-27-2013, 03:20 AM
 
Location: Florida
21,124 posts, read 22,047,124 times
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Quote:
Originally Posted by TFW46 View Post
I am and I do. My Medigap policy is with United American and it's through my former company's retirement program. I do like it very much. It's actually the Medigap F policy and the cost is $100/month. I hired an independent insurance agent to compare it with all other available policies and he couldnt find a better, more cost-effective one.

If I didnt have that, I'd go with Blue Cross Blue Shield -- again with the F policy.


And I've been a member of several class action lawsuits. I was a plaintiff in one. I've received thousands of dollars in settlements in a couple of them and hundreds of dollars in several others.
Understand that I am not questioning your veracity but have to wonder whether or not your company contributes to you policy or whether it's a HD F or, if neither of those, what area you are in.
I just find it remarkable that any company offers Plan F at that price.
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Old 12-27-2013, 08:21 AM
 
15,546 posts, read 21,498,284 times
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Originally Posted by old_cold View Post
Understand that I am not questioning your veracity but have to wonder whether or not your company contributes to you policy or whether it's a HD F or, if neither of those, what area you are in.
I just find it remarkable that any company offers Plan F at that price.

It wasnt my intention, when I replied to Robyn's question, to have to defend my Medigap cost. But I'll tell you that I'm sure that my company does contribute to my policy. I worked there 20+ years and have a generous pension in addition to stock options and other retirement benefits.
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