‘Uphill Battle’ Ahead for AARP Insurance Class Action Plaintiffs

Holders of Medicare supplement policies offered by UnitedHealth Group Inc. for AARP Inc. members face an “uphill battle” to show they experienced injury by an alleged “scheme” to charge for illegal insurance commissions, a California federal judge said Thursday.

Jeremy Nichols and Leon Wilde accused AARP and United of charging consumers for the costs of “illegal insurance commissions,” which the defendants say are actually royalties paid for branding and marketing the Medicare supplement insurance. The plaintiffs say AARP has acted as United’s de facto agent for years.

The defendants moved to dismiss the action in November, arguing that the theories ...