Two Christian groups in California have been ordered to shut down their cost-sharing health plans and cease conducting business by the State’s Department of Insurance.
The State issued the Cease and Desist order against Aliera Healthcare, Inc. and Trinity Healthshares, Inc., on the grounds that the two faith-based cost-sharing health ministries are misleading consumers by operating outside of the laws regulating the insurance industry.
Healthcare Sharing Ministries (HCSMs) allow for members to pool their resources, so healthcare costs are paid by other members.
In addition to their lower costs, they are attractive to their Christian members because they do not cover procedures such as abortion, contraceptives, transgender surgery and assisted suicide which they find morally objectionable.
However, the plans are not traditional insurance plans and do not come with a guarantee that healthcare costs will be covered.
“Consumers who bought these plans thinking they purchased comprehensive health insurance deserve the full protection of our laws,” said Insurance Commissioner Ricardo Lara. “Consumers should know they may be able to get comprehensive coverage through Covered California that will protect their health care rights.”