California Attorney General Rob Bonta has reached a $34 million settlement to resolve claims that the Aliera Companies and its subsidiaries, along with Sharity Ministries, (formerly Trinity Healthshare) sold and operated sham health plans in violation of state law.
The Oct. 16 settlement permanently bars the companies from conducting business in California, according to a news release from the state.
In a lawsuit first filed in 2022, the state alleged that Aliera and Trinity misrepresented themselves as a legitimate healthcare sharing ministry. Under federal law, ministries must be nonprofit 501(c)(3) organizations that allow members of a religious community to pool funds to help pay one another’s medical expenses. However, Trinity was never a qualified ministry and instead functioned as an unauthorized health plan that did not comply with consumer protection laws. According to the attorney general’s office, the companies routinely denied legitimate claims and kept nearly 84% of members’ premiums rather than covering their medical costs…