The Office of Insurance Commissioner has fined Aliera Healthcare $1 million and it will have to stop selling insurance in the state after an investigation revealed that it had been selling illegal policies since 2018.
The Insurance Commissioner took action against Aliera and its partner, Trinity Healthshare Inc., in 2019 after an investigation revealed that the companies sold 3,058 policies to Washington consumers and collected $3.8 million in premiums.
Kriedler's investigators found that Aliera:
— Sold insurance without a Washington insurance producer license.
— Represented an unauthorized insurer, Trinity.
— Operated an unlicensed discount plan organization.
Kreidler's office had issued a cease and desist order against Aliera, but Aliera appealed. The order was upheld Nov. 13, and Insurance Commission levied the fine soon after.
Aliera, an unlicensed insurance producer in Washington, administered and marketed health coverage on behalf of Trinity HealthShare. Trinity represents itself as a health care sharing ministry. Such ministries are exempt from state insurance regulation only if they meet statutory requirements.
Some 20-plus customers had their claims denied because their medical conditions were considered pre-existing under the plan.
"Aliera and Trinity promised to provide people with coverage when they needed it only to leave consumers with huge medical bills," Kreidler said in a statement. "I'm taking action today to send a message to all scam artists — if you harm our consumers, you will pay heavily.
"Shopping for health insurance can be very stressful — especially if you have to worry about being ripped off. True insurance companies have to meet rigorous standards before they can sell coverage to consumers. These companies are hiding behind a federal and state exemption that exists for legitimate health care sharing ministries and using it to rake in profit across the country on the backs of vulnerable consumers."
Aliera has 90 days to appeal the fine.
For more information on this story, log on to https://www.insurance.wa.gov/
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