Insurance Commissioner Kim Holland today announced measures barring Christian Care Ministry, also known as Medi-Share, from selling insurance to Oklahomans.
“Consumers look to the Oklahoma Insurance Department to actively monitor entities that offer insurance to Oklahomans,” said Holland. “In the Medi-Share case, the company had all the pieces in place to take money from consumers but had no mechanisms to ensure they could pay claims once their insured customers had needs.”
After the administrative hearing held Nov. 7-8, 2007, the hearing examiner found “clear and convincing evidence” that Medi-Share was acting as an insurance company by using standard insurance methods, including evaluating potential member eligibility by underwriting, processing member’s medical claims, receiving premiums and marketing its rates and coverage.
The Oklahoma Insurance Department’s investigation also noted no existing reserving structure – a key financial component to ensure a company’s ability to pay claims – and no actuarial oversight in an apparent scheme to avoid regulatory oversight.
Current customers of Medi-Share may choose to retain their coverage pending the company’s right to appeal to state district court. Medi-Share continues to be prohibited from soliciting and selling new policies. The Oklahoma Insurance Department encourages all consumers to call and confirm that any company offering insurance or insurance-like products is properly licensed to do business in Oklahoma.