Kuderer fines illegal health insurer $350,000

OLYMPIA, Wash. — Washington state Insurance Commissioner Patty Kuderer fined ClearShare Health, Clearwater Benefits LLC, and three related companies $350,000 on December 3 for selling unauthorized health insurance. Kuderer also ordered the companies to stop transacting unauthorized insurance, including selling ClearShare health plans in Washington.

Clearwater Benefits is a non-resident sales agency authorized to sell life and disability products in Washington that was also marketing and selling ClearShare Health plans. An inquiry through social media in 2023 prompted the staff of the Office of the Insurance Commissioner (OIC) to investigate whether ClearShare’s health plans were being sold legally.

ClearShare is a nonprofit corporation incorporated in April 2022 that markets itself as a health care sharing ministry. The company sold 376 memberships to Washington residents between August 1, 2022, and March 30, 2024. Around 200 of those were sold before ClearShare was exempted from federal income tax as a non-profit organization by the Internal Revenue Service, which was effective in February of 2023.

During OIC’s investigation, ClearShare reported it collected $524,095 in premiums from Washington members between August 2022 and March 2024, and paid $54,201 towards their medical expenses while denying another $54,535 in expenses. 

ClearShare’s plans also included pre-existing condition exclusions. Other medical services — like abortion — that must be covered in accordance with state law weren’t covered. 

By law, health care sharing ministries must meet a certain set of qualifications. That includes sharing medical expenses continuously since December 31, 1999, which ClearShare — incorporated in 2022 — has not. As the company was not, by definition, a health care sharing ministry and was not authorized to sell health insurance in Washington state, the companies were determined to be operating illegally and, as a result, are subject to fines of up to $25,000 per violation.

Kuderer also ordered ClearShare to pay taxes, including interest and penalties, on the premiums collected from Washington residents. 

Final order issued on Unite Health Share Ministries

The OIC received a final order on its case against Unite Health Share Ministries and United Faith Ministries on November 6, 2025. OIC’s Presiding Officer ruled the companies did not meet the criteria to be classified as a health care sharing ministry and violated the Insurance Code by transacting insurance as unauthorized insurers.  On December 8, 2025, the companies filed a petition seeking judicial review of the final order.

The agency opened an investigation after receiving a consumer complaint that Unite Health had only paid $5,000 on a medical claim, leaving them with almost $200,000 in medical bills remaining. The OIC issued a $300,000 fine and a cease-and-desist order in June of 2024. 

Help with insurance

Anyone looking for coverage can check the OIC’s Consumer Tools page to ensure the company is licensed to sell insurance in Washington.

For insurance questions or complaints, contact Kuderer’s consumer advocates online or by phone at 800-562-6900.