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Court Revives AARP Health Insurance Dispute
Updated May 4, 2017 6:23 AM
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(CALIFORNIA) - A class action suit left for dead in a California courtroom was revived by the U.S. 9th Circuit Court of Appeals, and the ruling left AARP, the nation's most politically potent senior citizens' lobby, and UnitedHealth Group Inc., the nation's largest Medigap insurance provider, exposed to a potentially costly settlement.

The suit accuses AARP of selling insurance without a license as required by California law, and it could lead to a recalculation of state and federal taxes to treat AARP funds collected from UnitedHealth as a "commission" rather than a "royalty."

AARP is both a sales and premium collection agent for UnitedHealth and keeps 4.95 percent of the money paid by millions of customers.

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