Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
An insurance company started by a convicted fraudster can’t pose as a religious organization to get out of a class action lawsuit filed by the people it insured, a Georgia federal judge has ruled.
U.S. District Judge Amy Totenberg ruled Tuesday that Aliera Companies Inc. — doing business as Aliera Healthcare Inc. — cannot legally offer faith-based insurance plans that are exempt from federal and state insurance laws, Law360 reported.
The for-profit insurance company is accused of partnering with a small Christian Mennonite group in Virginia in order to offer what is known as Health Care Sharing Ministry Plans, insurance plans that allow people of the same faith to share responsibility for each other’s medical expenses.
Those providing the plans are exempt from federal and state insurance laws and regulations, Law360 reports.
However, Judge Totenberg said Aliera and its affiliates had been investigated, sued and subjected to cease and desist orders in several jurisdictions that have found its plans do not qualify for the religious exemptions.
“Aliera is engaged in the unauthorized business of insurance,” she said. “While the court is highly cautious of assessing the genuineness of an individual or entity’s religious beliefs, the case here is not a close call.”
To meet the requirement for religious exemption, the provider must limit insurance to participants to those of similar faith, facilitate payment sharing among participants, provide voluntary fees and issue monthly statements that detail costs for qualified needs, Totenberg reportedly said.
Judge Totenberg also denied Aliera’s attempts to shake allegations it made millions through its overcharging of policyholders.
She said the company was founded in 2015 by Timothy Moses, who had already served time for felony securities fraud and perjury. In 2016, he connected with Anabaptist Healthshare — the Mennonite entity — which was already registered with the government to provide Health Care Sharing Ministry Plans.
Their relationship reportedly fell apart after Anabaptist discovered Moses was a convicted felon and was allegedly diverting its money to himself. Anabaptist sued him and won, Law360 reports, but Moses kept the business.
Plaintiffs Noelle LeCann, Kristin Selimo and Tania Funduk say they paid between $500 and $1,700 in premiums each month, but then were denied coverage when they had medical issues.
However, Aliera’s defence is that its member fees are not mandatory, and therefore its plans are not insurance, Law360 reports.
On Tuesday, Totenberg ruled that the company’s contracts contradicted its argument — it was clearly an insurance provider. The plaintiffs are looking to represent all Aliera plan participants from 2017 onwards who made payments to the company when it was posing as a Health Care Sharing Ministry Plans.
In other medical insurance news, health insurance provider Humana is facing a class action lawsuit accusing it of charging its employees excessive fees for their retirement funds and mismanaging more than one billion dollars in assets.
The plaintiffs allege that Humana, its board, and other staff breached fiduciary duties by mismanaging the group’s retirement funds and charging “unreasonable” fees.
What do you think of the claims in this class action lawsuit? Let us know in the comments!
The plaintiffs are represented by David F. Walbert and Jennifer K. Coalson of Parks Chesin & Walbert PC; and Paul V. Sweeny and Stephen J. Fearon Jr. of Squitieri & Fearon LLP.
The Aliera Medical Insurance Religious Exemption Class Action Lawsuit is LeCann et al. v. The Aliera Companies Inc., Case No. 1:20-cv-02429, in the U.S. District Court for the Northern District of Georgia.
Don’t Miss Out!
Check out our list of Class Action Lawsuits and Class Action Settlements you may qualify to join!
Read About More Class Action Lawsuits & Class Action Settlements:
- Class Action Lawsuits Accusing Bank of America of Mishandling Unemployment Funds Consolidated
- BREAKING: Accellion Data Breach Caused by Hackers Exploiting Old Software, Says Class Action Lawsuit
- Waste Management Inc Data Breach Exposed 45K Workers to Cybercrime, Claims Class Action Lawsuit
- CarMax Fraudulently Dealt in Cars That Don’t Meet Emission Standards, Class Action Lawsuit Says
