California Attorney General Rob Bonta today announced a settlement resolving claims that The Aliera Companies, Inc., and its subsidiaries, (collectively, Aliera) as well as Sharity Ministries, Inc., formerly known as Trinity Healthshare, Inc. (Trinity), violated state law by creating, operating, and selling sham health insurance in California. In January 2022, Attorney General Bonta filed a lawsuit against Aliera and Trinity, alleging that they misrepresented Trinity as a health care sharing ministry (HCSM). HCSMs are 501(c)(3) nonprofit corporations historically comprised of members of a particular religious community, who contribute money to a shared pool with the understanding that the money would pay for catastrophic or surprise healthcare costs pursuant to the members’ shared religious tenets. However, Trinity was never an HCSM and Trinity plans were instead unauthorized health plans that Aliera — a for-profit company, not a 501(c)(3) nonprofit corporation as required under federal law — operated and sold while ignoring vital consumer protections that legitimate health plans must follow. Rather than paying its members’ healthcare costs, the companies regularly declined claims and retained nearly 84% of its members’ contributions. Today’s settlement bars Aliera and Trinity from operating in California and includes a penalty of $34 million for violations of law. Given the entities’ pending bankruptcy proceedings and lack of funds, the penalty is symbolic, but necessary to highlight the seriousness of the misconduct to others who might consider similar fraudulent schemes.

“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. In reality, bad actors operating Aliera and Trinity were lining their own pockets. It’s shameful, it’s illegal, and it has no place in California,” said Attorney General Bonta. “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. We remain committed to ensuring that all who participated in this unlawful scheme similarly answer for their actions. Lastly, to my fellow Californians: Please do your research when seeking to obtain health insurance and first consider applying for affordable, reliable coverage through Covered California.”