Duncan et al. v. Aliera Companies, Inc. et al.

Why this Matters:

Plaintiffs, consumers in California, filed a class action complaint alleging that certain unfair and deceptive practices by health care sharing ministries constituted illegal contracts under state law, breach of fiduciary duty, unjust enrichment, and violated California’s Unfair Competition Law, False Advertising Law, and Unfair Insurance Practices Act. Health care sharing ministries provide limited benefits and do not constitute health insurance — they do not comply with the consumer protections of the Affordable Care Act, such as the prohibition against denying or rescinding coverage for pre-existing medical conditions.

Potential Impact:

The growth of health care sharing ministry enrollment and aggressive marketing of such products that do not comply with major consumer protections raise concerns about consumers being misled and exposed to substantial financial risks.