AARP, UnitedHealth Group Launch New Health Insurance Plan for 50- to 64-Year-Olds in 10 States
AARP and UnitedHealth Group have launched a new health insurance plan in 10 states for individuals ages 50 to 64, the Washington Post reports. The Medical Advantage Plan costs between $142 and $362 per month, based on the age of participants and their scores on a questionnaire. The plan covers a set cost for a number of health services. For example, the plan provides $75 for physician visits, $1,200 per day for hospital stays and $7,856 for coronary-artery bypass surgeries. Tom Lindquist, president of the AARP insurance division at UnitedHealth, said that the plan "will be attractive to AARP members who have retired early, are employed part time or are currently not working" and will serve as "an affordable alternative to major medical insurance." However, some health care experts raised concerns about the plan. Gary Claxton, director of the Kaiser Family Foundation health care marketplace project, said that the plan is "not a substitute for more classical insurance." Urban Institute senior fellow Marilyn Moon added that the plan "might lure people into thinking they have a lot of protection" and recommended that low-income individuals purchase traditional health coverage to protect themselves from "major expenses." Julie Alexis, member health products manager at AARP, said that although the plan is "not comprehensive in any way, shape or form," the group "had to make something available (to) people who are going without coverage" because they cannot afford to purchase individual health insurance (Graham, Washington Post, 2/11).
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