The Health Care Sharing Ministry known as Jericho Share in California has been ordered to pay a fine of $10,000 and permanently discontinue operations in California. The California Department of Insurance (CDI) imposed the fine and instructed Jericho Share to shut down after an investigation. After consumer complaints and a review of Jericho Share operations, CDI determined the Health Care Sharing Ministry was acting like a health insurance company and they were not licensed to transact insurance in California.
Jericho Share Cease and Desist, House of Prayer and Life, Texas
In addition, CDI found that House of Prayer and Life, Inc., dba Jericho Share, does not qualify as a Health Care Sharing Ministry. The House of Prayer and Life, Inc., began operating in Texas in 1968. They began offering products in California in October of 2021 under the definition of a Health Care Sharing Ministry.
Health Care Sharing Ministries (HCSM) are not health insurance. There are constant complaints that HCSMs do not honor their promises to pay claims. However, there is usually confusion on the part of the HCSM members about exclusions, pre-existing conditions, and limits on claims reimbursements.
Health Care Sharing Ministries are legal when they meet all the definitions for the sharing of medical expenses among members paying a monthly contribution. It appears that CDI determined the Jericho Share was not a HCSM and marketing practices led members to believe that programs offered amounted to creditable health insurance.
There may be no Health Insurance Option for Jericho Share Members
The CDI press release instructs consumers participating in Jericho Share to contact Covered California about health insurance options or to file a complaint. First, since Jericho Share is not health insurance, when a Jericho Share member loses coverage, that is not a qualifying life event for a Special Enrollment Period to enroll in health insurance outside of the Open Enrollment Period. Second, Covered California does not handle complaints about either HCSM or health plans. Complaints about either of those types of organizations need to be directed to the California Department of Insurance or the California Department of Managed Health Care.
California Department of Insurance News Release
Tuesday, June 25, 2024
SACRAMENTO, Calif. — A Department of Insurance investigation has resulted in an Order to Cease and Desist and a monetary penalty against Jericho Share after it was discovered the company was illegally selling health insurance products to thousands of California consumers.
During the investigation the Department interviewed several California residents that became Jericho Share members in 2021 and 2022 and experienced problems regarding coverage for medical issues and cancellation of their membership.
The investigation found Jericho Share is not currently licensed or authorized by the Insurance Commissioner to act in any capacity regarding the transaction of insurance in California.
The company sold misleading lookalike health plans marketed as “health care sharing ministries” that do not comply with California laws put in place to protect consumers. These plans were marketed as cheaper alternatives to traditional coverage when, in reality, they do not provide comprehensive coverage for pre-existing conditions and other coverage as required by state and federal laws.
The investigation and resulting order will require Jericho Share to pay a monetary penalty of $10,000 and permanently discontinue operations in the State of California.
The Department urges consumers who purchased products from Jericho Share to contact Covered California at (855) 295-4357 or online at www.coveredca.com, to determine if they have experienced a qualifying life event that entitles them to a special enrollment opportunity.
Consumers are also encouraged to contact the Department of Insurance’s Hotline at
(800) 927-4357 to learn about their options or to file a complaint if they were faced with unexpected costs or other problems with Jericho Share, or any other health care sharing ministry.
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