Migliaccio & Rathod LLP is currently investigating AARP for allegedly collecting commission payments disguised as royalty fees. AARP collects a 4.95% “royalty” fee on the Medigap policies that it administers in collaboration with UnitedHealth Group and UnitedHealthcare Insurance Company. A current lawsuit, Krukas v. AARP et al, 1:18-cv-01124-BAH (D.D.C.), alleges that AARP’s administration and provision of other services in support of these group Medigap policies amounted to it acting as an unlicensed insurance agent, that the “royalties” paid to AARP as a percentage of premiums constituted illegal commissions, and AARP materially misrepresented the nature and source of the “royalties.” As a result, consumers paid more for AARP Medigap policies than they should have. The federal judge in that case recently issued an order allowing the case to proceed to the next phase of litigation.
Migliaccio & Rathod LLP, along with Taus, Cebulash & Landau LLP, Gustafson Gluek PLLC, and Scarlett & Hirsch PA represent the plaintiff in the Krukas case.
Did You Purchase Your Medigap Policy Through AARP?
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Attorneys Committed to Consumer Protection
The lawyers at Migliaccio & Rathod LLP have years of experience in class action litigation against large corporations, including in cases involving unfair & deceptive trade practices. More information about our current cases and investigations is available on our blog.