The State of Texas has filed a lawsuit seeking to stop Aliera Healthcare from selling health insurance in Texas and engaging in the business of insurance without a state license. The lawsuit also seeks civil penalties.

After filing the lawsuit in the 53rd Civil District Court in Travis County (Cause Number D-1-GN-19-003388), the Texas Department of Insurance (“TDI”) dismissed the administrative action pending with the State Office of Administrative Hearings.

On July 11, the state filed a first amended petition. The amended petition also sought a temporary restraining order and temporary injunction against Aliera, its successors, affiliates, agents, and assigns.

The TDI has estimated that Aliera has about 17,000 customers in Texas and 100,000 nationwide.

On July 12, Aliera and the state participated in a hearing on the temporary restraining order in the district court in Travis County. Following the hearing, the judge found that there was evidence of irreparable injury, loss, and/or damage if the court did not issue a temporary restraining order. The judge's order prohibited Aliera, its successors, affiliates, agents, and assigns, from accepting any new customers in Texas.

Now, Aliera has agreed to:

  • Not accept or write new business in Texas until the case is resolved.
  • Not transfer, expend, or disburse any funds outside the ordinary course of business without approval from the court until the case is resolved.

Chapter 1681 of the Texas Insurance Code sets forth the requirements for a health-sharing ministry, which include:

  • The organization must be faith-based and nonprofit. Participants must be of a similar faith.
  • The organization matches participants who have medical bills with other participants able to help pay those bills.
  • There is no assumption of risk or promise to pay among the participants or the health care sharing ministry.
  • The organization must provide a monthly statement that includes administrative fees and costs to participants.
  • All applications, guidelines, and plan cards must clearly indicate that the participant is part of a health care sharing ministry that is not engaging in the business of insurance.

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Steven A. Meyerowitz

Steven A. Meyerowitz

Steven A. Meyerowitz, a Harvard Law School graduate, is the founder and president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. He may be contacted at [email protected].

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