AARP will be letting an insurer offer short-term care insurance (STCI) that includes “AARP” in the name to many of its 38 million members.
The group has let Medico Insurance Company, a unit of American Enterprise Group Inc., to be the AARP STCI provider.
Medico will provide a product designed exclusively for AARP members, AARP and American Enterprise announced last week.
Medico will try to have the product on the shelves in several states by early 2020
AARP is a Washington-based group that serves people ages 50 and older.
Medico is a Des Moines, Iowa-based issuer of life and health products aimed at older consumers. Its parent, American Enterprise, also controls American Republic Insurance Company and Great Western Insurance Company.
Medico now sells a short-term recovery care insurance product to consumers ages 18 to 79. That policy can pay for recovery care for up to 12 months.
Like the existing Medico recovery care product, the new Medico AARP STCI product will help purchasers pay for short-term use of home health care, adult daycare, hospice care, assisted living facility care and nursing home care, according to AARP and American Enterprise.
AARP and American Enterprise have not talked about what the new STCI prices or underwriting process will be like.
An agent field guide on the web shows the current individual product uses medical underwriting. Applicants can be declined if they have conditions such as a history of stroke, kidney failure, lupus, or an inability to dress themselves.
An applicant who was 5 feet 6 inches tall would have to weigh somewhere between 106 pounds and 254 pounds to qualify for coverage.