AARP Finds Religion
Last week, a New York Times story highlighted AARP’s plan to sell a new Medicare Advantage plan to those over 65 and a new individual insurance plan to those 50 to 64 years old. The products will be available in 2008. The individual insurance plan will be a PPO and have a HSA-compatible option.
Interesting, AARP said that they would not be able to sell the policies to near retirees in all states, due to uncompetitive state regulations. The products will not be available to sick near retirees because “to guarantee issuance of a policy to every applicant in that age group is ‘just not economically feasible,’ stated Ms. [Dawn] Sweeney [president of AARP Services Inc., the tax-paying business unit of AARP].”
As someone living in one of the five states (MA, ME, NJ, NY & VT) with mandated guarantee-issuance for all individual insurance products, I think that it is too bad AARP members will not have access to these affordable policies. In addition, those in WA and OR with adjusted community rating regulations (but no guarantee issue) will likely not have access either.
Apparantly, AARP thinks near retirees would like an HSA option. I guess HSAs are not just for the young, healthy or weathly.
Who would guess just a week after Easter, AARP would find religion and start believing in the private market and competitive health insurance regulations.