Texas Sues Aliera Healthcare Over Non-Licensed Insurance Sales

A lawsuit has been filed by the State of Texas seeking to stop Georgia-based Aliera Healthcare from selling health insurance in the state and engaging in the business of insurance without a license, the Texas Department of Insurance (TDI) reported.

The lawsuit also seeks civil penalties.

After filing the suit June 13 in the 53rd Civil District Court in Travis County (Cause Number D-1-GN-19-003388), TDI dismissed an administrative action it had filed against the company that was pending with the State Office of Administrative Hearings.

On July 11, the state filed a first amended petition that sought a temporary restraining order and temporary injunction against Aliera, its successors, affiliates, agents and assigns. A hearing on the temporary restraining order was held July 12 in Travis County District Court, after which the judge found evidence of irreparable injury, loss, and/or damage if the court did not issue a temporary restraining order. The judge’s order prohibits Aliera from accepting any new customers in Texas.

When it first took action against Aliera in May, TDI said the firm claimed to be running a health-sharing ministry and is therefore exempt from TDI regulation and reporting requirements. Texas law requires health-sharing ministries to be non-profit organizations.

TDI has alleged that Aliera is a for-profit corporation and is using only 20 percent or less of the money it collects from consumers to pay health claims.

Aliera is believed to have more than 17,000 customers in Texas and 100,000 nationwide. Insurance regulators in Washington state have ordered Aliera to stop selling insurance there and the New Hampshire Insurance Department has warned that Aliera may be operating illegally.