AG Rob Bonta announced a $1.3 million settlement with Sedera, Inc. (Sedera) and Sedera Medical Cost Sharing Community, LLC (SMC) to resolve allegations that they violated California law by advertising and selling sham health insurance plans to over two thousand Californians. In addition, the settlement resolves allegations that Sedera and SMC falsely advertised their sham plans as both novel “non-insurance” medical cost sharing products and as health care sharing ministry (HCSM) plans. An investigation by the California Department of Justice found that because, among other things, Sedera and SMC collected mandatory monthly payments in exchange for the payment of medical services, Sedera and SMC operated health plans. Health plans are required to comply with a myriad of important state consumer protection laws and regulations. Those laws and regulations require that, among other things, health plans provide coverage for all essential health benefits, including preventative care. The products offered by Sedera and SMC did not. 

Attorney General Bonta Announces $1.3 Million Settlement Against Companies Over Sham Health Insurance Plans | State of California – Department of Justice – Office of the Attorney General