PHILADELPHIA — Two insurance policyholders have filed a class-action lawsuit against AARP Inc, AARP Services Inc, AARP Insurance Plan, UnitedHealth Group Inc, and UnitedHealth Insurance Co., claiming violations of Pennsylvania Unfair Trade Practices and Consumer Protection Law, conversion, unjust enrichment, fraudulent concealment and fraud.
Stephen Christoph and Glen Hill filed a complaint on behalf of themselves and all others similarly situated on Aug. 15, in the U.S. District Court for the Eastern District of Pennsylvania, against the defendants alleging that they were fooled into paying artificially inflated insurance charges for Medicare supplemental health insurance policies so that defendants could use the inflated portion of the payment for illegal purposes – namely the payment of insurance commissions to an unlicensed entity, the suits says.
According to the complaint, the plaintiffs allege that between March 2014 and January 2017, they purchased AARP Medigap policy and paid their premiums. Had they known about the illegal premiums, they would have purchased a Medigap policy from a different insurer, according to the complaint.
The plaintiffs hold AARP, Inc, AARP Services Inc., AARP Insurance Plan, UnitedHealth Group Inc, and UnitedHealth Insurance Company responsible because the defendants allegedly hid the fact that the payment to AARP is actually a percentage of premium commission that was charged to them in addition to their insurance premium paid to UnitedHealth for coverage.
The plaintiffs request a trial by jury and seek that the defendants be issued a permanent injunction from engaging in the acts or practices mentioned in the suit, award judgment for damages and restitution in an amount within the jurisdictional limits of the court to compensate for the losses.
Christoph and Hill further seek for an order requiring the disgorgement of all sums taken from consumers, interest, income, profits, and accessions thereto, court costs, attorneys’ fees and any other relief the court determines proper.
They are represented by Brian Penny of Goldman Scarlato & Penny P.C. in Conshohocken, Pennsylvania and of Bursor & Fisher PA in New York.
U.S. District Court for the Eastern District of Pennsylvania Case number 2:18-cv-03453-NIQA