Attorney General Bonta Issues Renewed Consumer Alert Reminding Californians of Misleading Claims Made by Many Health Care Sharing Ministry Plans

OAKLAND - California Attorney General Rob Bonta today issued a consumer alert reminding Californians about sham health insurance plans offered by some health care sharing ministries (HCSMs). Historically, HCSMs were composed of members of a particular religious community who contributed money to share catastrophic or unexpected healthcare costs. Due to congressional Republicans' decision to allow the Affordable Care Act's (ACA) enhanced premium subsidies to expire on December 31, 2025, health insurance premiums have soared for many Americans, and millions have lost their coverage as a result. Some HCSMs may use this as an opportunity to misleadingly advertise HCSM plans as affordable alternatives to comprehensive ACA-compliant healthcare coverage. But Californians should be aware that HCSMs won't cover preexisting conditions or guarantee coverage for medical costs or services.

"Health care sharing ministries do not provide the same protections as Covered California plans, and that difference can matter the most in times of medical need," said Attorney General Bonta. "Without comprehensive health insurance, an unexpected illness or serious accident could leave you responsible for substantial medical bills. Even as congressional Republicans and the Trump Administration continue to undermine the Affordable Care Act, Covered California plans can still provide affordable, quality health insurance options, giving Californians access to the coverage they deserve."

Before passage of the ACA, some communities used HCSMs to pool money for members facing a medical crisis. After the passage of the ACA, bad actors capitalized on the fact that HCSMs were exempt from many ACA requirements, including the requirements to cover preexisting conditions, provide 10 essential health benefits (such as maternity care, mental health, and prescription drugs), and limit out-of-pocket costs. These bad actors advertised their HCSM plans as low-cost alternatives to ACA-compliant health insurance - but the HCSM plans were significantly less comprehensive, leaving many consumers underinsured.

Many entities that claim to be HCSMs are operating in California illegally because they sell insurance without required consumer protections, without a license from the California Department of Insurance, and falsely advertise their plans. The Attorney General's Office has entered into settlements with the Alliance for Shared Health, Sedera Inc., and The Aliera Companies Inc., including its principals and affiliate, for misleading California consumers into purchasing their products. These settlements require these companies to stop selling health plans in the state. But these are not the only bad actors.

There are several important factors to consider when comparing an HCSM plan with a traditional health insurance plan:

• Read the disclosures and member guidelines carefully. HCSMs often use language closely mimicking traditional health insurance to confuse consumers. For example, like Covered California plans, many HCSMs advertise gold, silver, and bronze "plans." Because of the confusion, consumers may not realize they have enrolled in an HCSM instead of traditional health insurance until coverage is rejected.
• Understand what's excluded. HCSMs often have coverage limits or exclusions for preexisting conditions and essential health benefits, including mental healthcare, pregnancy or maternity care, and preventive services. This means that if you have a preexisting or chronic medical condition, you could be responsible for tens of thousands of dollars or more in medical costs because the HCSM may not cover those costs.
• Consider your financial risk. Think about whether you could afford significant medical bills if they were only partially covered or not covered at all. Some HCSMs' monthly payments may be cheaper than traditional health insurance, but those savings often come at a price. The prices are lower because they may not pay your medical costs even though you have made all your monthly payments.

A health insurance plan through Covered California provides the protections of the ACA. Consumers can enroll now and do not need to wait for open enrollment in the fall. Visit coveredca.com to find the plan that works best for you and your family. In addition, Medi-Cal, California's Medicaid program, provides low-cost or free health coverage to eligible Californians. Many Californians may qualify based on their income or household circumstances, and applying is free. Visit dhcs.ca.gov/medi-cal to find out more.

Attorney General Bonta continues to oppose federal efforts that drive up the cost of healthcare. In March 2026, Attorney General Bonta co-led a coalition of 19 attorneys general in submitting a comment letter responding to a proposed rule by the U.S. Department of Health and Human Services (HHS) and Centers for Medicare & Medicaid Services (CMS) that creates new hurdles that will significantly reduce healthcare enrollment and drive up consumers' health insurance premiums and out-of-pocket costs. And in July 2025, Attorney General Bonta co-led a multistate coalition in a lawsuit challenging an unlawful final rule promulgated by HHS and CMS that would create significant barriers to obtaining healthcare under the ACA.

If you believe you have been the victim or target of suspicious marketing by a HCSM, please immediately file a complaint at oag.ca.gov/report.