California has reached a settlement with the Aliera Companies, Inc., its subsidiaries, and Sharity Ministries, Inc. (formerly Trinity Healthshare, Inc.), resolving claims that the organizations violated state law by marketing and selling unauthorized health plans.
The settlement, announced by California Attorney General Rob Bonta, prohibits the companies from conducting business in the state. The lawsuit, originally filed in January 2022, alleged that Aliera and Trinity misrepresented Trinity as a health care sharing ministry—a type of nonprofit typically made up of members who share religious beliefs and contribute to a shared fund for medical expenses.
Bonta claims that the plans sold by the companies did not meet the legal standards of legitimate health insurance and failed to provide the consumer protections required under California law. The state argued that the companies denied claims and retained approximately 84 percent of member contributions.
Although the $34 million penalty is largely symbolic due to the companies’ ongoing bankruptcy proceedings, Bonta said it serves as a warning to others who might consider similar practices.
“Aliera and Trinity tricked over 14,000 Californians into thinking that they were purchasing a legitimate health plan, all while collecting tens of millions of dollars in monthly premiums,” Bonta said in the announcement. “In reality, bad actors operating Aliera and Trinity were lining their own pockets.:
As part of the agreement, the companies are permanently barred from marketing or selling health care sharing ministry plans in California or to California residents. They are also prohibited from engaging in practices that violate the state’s Unfair Competition Law and False Advertising Law.