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.
“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,” Attorney General Bonta said. “Though Aliera and Trinity no longer do business in our state, the settlement we reached sends an important message: If you mislead consumers into purchasing sham health insurance, the California Department of Justice will hold you accountable.”
Trinity’s former president and CEO reached separate settlements in 2023, each agreeing to a $1 million penalty, a permanent ban on doing business in California, and cooperation with ongoing litigation. Trinity and Aliera have also entered into Chapter 11 liquidation bankruptcies in Delaware.
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