SACRAMENTO – The California Department of Insurance alleges that a popular health care sharing ministries plan is misleading some 11,000 California consumers by offering services without permission from the insurance commissioner.
The state insurance authority issued a cease-and-desist order to Aliera Healthcare Inc. and its subsidiary Trinity Healthshares Inc. in March after learning that the unapproved ministries plan had allegedly provided misleading training to sales agents, promoted misleading advertisements and sold products that are non-compliant with the insurance code.
"These specific businesses are operating in violation of California law," said Deputy Commissioner of Communications, Northern California Michael Soller.
Because some of their products do not cover pre-existing conditions, abortion, contraception and do not comply with the federal Mental Health Parity and Addiction Equity Act, the order bans Aliera Healthcare and Trinity Healthshares from selling insurance, advertising, receiving money or commissions related to insurance products within the state of California, according to a press release.
"Each state’s authority is limited to insurance transactions in that state," Soller told the Northern California Record. "That is why California had to take this separate state action to protect Californians."
Thousands who cannot afford private health insurance are instead turning to religion-sponsored health care sharing ministries for their medical care, according to media reports, and while health care sharing ministries plans are marketed as a cheaper alternative to traditional coverage, in reality they often do not provide comprehensive coverage as required by state and federal laws.
"We urge people to consider comprehensive insurance by contacting Covered California," Soller said.