Washington state insurance regulators have leveled a $1.1 million fine against a pair of companies advertising faith-based health coverage that have prompted numerous consumer complaints nationwide.
Insurance Commissioner Mike Kreidler recently announced the fines against Aliera Healthcare and Trinity HealthShare, nearly 3 months after issuing cease-and-desist orders to both companies preventing them from selling coverage options in Washington. Kreidler’s office alleges Trinity is falsely presenting itself as what’s known as a “heath sharing ministry,” a faith-based organization that can engage in health care sharing costs outside of federal and state insurance regulations if it meets certain requirements, and that Aliera is marketing and administering policies with dubious claims of lower costs and coverage that mimics insurance.
The companies have fought similar allegations in Texas, where a lawsuit was filed earlier this month attempting to prevent additional policies from being sold. Aliera has argued that it does not market its plans as insurance and that it meets the federal requirements for a ministry.
Kreidler’s office similarly took action against a company called Samaritan Ministries in 2011. The Washington Legislature passed a law shortly thereafter preventing the state from regulating such companies as insurers, adopting a federal legal definition of a ministry that Kreidler maintains Aliera doesn’t meet.
Health sharing ministries, under federal law, must be a tax-exempt organization that requires its members to follow shared ethical or religious principles, and must have been formed prior to 2000.
Aliera and Trinity have until October 30th to appeal the fine. (Spokesman-Review)
