Michigan Issues C&D Order Against Aliera Companies, Connected Businesses

Michigan insurance regulators issued a cease and desist order against a healthcare sharing ministry and two connected companies for allegedly acting in violation of the state’s insurance code.

In a media release, Michigan Department of Insurance and Financial Services (DIFS) Director Anita Fox said an “investigation showed that the companies under this cease-and-desist order are essentially operating as unlicensed health insurance companies, in violation of the Insurance Code.”

The DIFS cease and desist order alleges that Aliera Companies is in violation of the law by marketing and selling memberships in a for-profit risk-transferring entity.

The order states that Aliera maintains direct control of two additional entities, Sharity Ministries and Ensurian Agency, and that all three entities broadly market HCSM plans to individuals and charge monthly premiums, which vary depending on age and health.

Further, membership in the plans can be cancelled if a member chooses not to make their purportedly optional payments, a requirement that effectively makes the payments mandatory and violates Michigan’s HCSM requirements

The order alleges that the three entities take advantage of the Health Care Sharing Ministries Freedom to Share Act to operate as unlicensed insurers in Michigan and thereby avoid both state and federal insurance regulations. Aliera, Sharity, and Ensurian will have 30 calendar days after the service of the order to contest it by requesting a hearing on the allegations.

The alleged actions may carry civil fines of up to $50,000 and restitution paid to those affected by the purported HCSMs.

Several other states, including Iowa, Maryland, Missouri and Texas previously have taken action against Aliera Companies over allegations that the company markets unlicensed health insurance products.

Though not considered health insurance under the Michigan Insurance Code, health care sharing ministries (HCSMs) are legal in Michigan under the Health Care Sharing Ministries Freedom to Share Act. They can provide assistance for individuals if certain requirements are followed, including collecting voluntary contributions from individuals who share a similar faith with no assumption of risk or promise to pay from the ministry to its participants. Plans that violate these terms may be considered health insurance companies and, if they are not properly licensed, they may be subject to action under the Michigan Insurance Code including a cease-and-desist order and possible fines.

Source: Michigan DIFS

Topics Michigan