Embattled health care sharing ministry Sharity Ministries — formerly known as Trinity Healthshare Inc. — has filed for bankruptcy and ceased all operations, the state Department of Insurance announced Tuesday.
As part of a consent order issued by state regulators in April, Sharity and another health care sharing ministry, The Aliera Cos., had already agreed to stop selling memberships in Connecticut, cover existing member costs and pay a combined fine of $50,000. Now, former Trinity customers are being advised to select a more traditional health care plan through the state’s Affordable Care Act marketplace.
“It is important for anyone who purchased a HCSM membership with Sharity to find coverage from a licensed insurer through Access Health CT by October 31,” said state Insurance Commissioner Andrew N. Mais. “The department is always willing to verify licensing and answer questions from consumers.”
Mais’s office had accused Trinity and Aliera of misrepresenting their products in an effort to circumvent Connecticut insurance regulations. A subsequent investigation culminated in the consent order laid out earlier this year.
Health care sharing ministries purport to represent a group of people with common religious or ethical beliefs who pool payments and then cover members’ health care expenses through that fund. The organizations often claim to provide more affordable protection than mainstream alternatives, but they have faced years of scrutiny from regulators because they do not offer actual health care plans, are not compliant with the federal Affordable Care Act and function with little outside oversight.
Because they are not regulated, it is not clear how many Connecticut residents belong to health care sharing ministries.
Numerous former clients have come forward to the Insurance Department and the media to allege that their ministries denied them coverage for needed and in some cases very expensive procedures.