AARP Didn’t Owe Members Fiduciary Duty on Medigap Insurance

AARP Inc. members challenging the organization’s revenue from supplemental health insurance can’t proceed with their new claim for breach of fiduciary duty, a federal court in the District of Columbia ruled Wednesday.

The suit alleges AARP and its insurance units failed to disclose a roughly 5% fee on premiums for “Medigap,” a type of health insurance that supplements Medicare. The initial claims in the suit survived a dismissal motion in March 2019 and remain pending.

AARP is a non-profit membership organization for people 50 and older, with reportedly more than 40 million members. About half of its members are older ...