Salvasen Health is out of business in Texas after the state's insurance department ordered the Houston-based payer to stop selling health plans April 26.
The order was effective immediately and was issued to owner and CEO Barry Glenn because the company was selling plans without a state license.
Salvasen and Mr. Glenn are banned from applying for a Texas insurance license for 10 years.
The state said it received numerous complaints about Salvasen's plan and how it did not offer the coverage members had been promised.
The company agreed to terminate all plans at the end of March and began to shut down.
Salvasen must continue paying claims until all obligations are met and pay back premiums collected from consumers if funds or assets remain.
Salvasen marketed health insurance products across the country and sold about 65,000 unauthorized health plans, according to a Texas Department of Insurance press release.
In March, the payer was banned from Wisconsin after selling health plans that were not ACA-compliant. Minnesota and Nevada have also taken actions against the company.
Texas members should continue submitting claims according to Salvasen insurance plan documents. A special enrollment period ending June 9 will allow those affected to get a new plan for 2022 coverage on the federal marketplace.