AARP is in talks to offer HMO coverage

Maryland Watch

November 27, 1996

The American Association of Retired Persons announced yesterday that it was entering discussions with Chesapeake Health Plan and NYLCare to offer HMO coverage in the Baltimore-Washington area.

This will be the first time AARP has offered managed-care insurance and the first time it has offered policies to people under 65, who make up 47 percent of its 32 million members.

NYLCare and Chesapeake are among nine HMOs in 18 markets selected to offer plans. AARP said it winnowed proposals from 51 HMOs in 23 markets to arrive at that group. Final discussions rTC and approvals are expected to take a few more months, with a target of offering policies by the middle of next year, said William F. Brown, an AARP spokesman.

NYLCare, associated with New York Life Insurance Co., and Chesapeake, a subsidiary of United HealthCare Corp., both offer Medicare HMO plans in this area with no monthly premium, beyond Medicare Part B premiums.

AARP has 1.5 million members in Maryland, Virginia and the District of Columbia.

Pub Date: 11/27/96

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