California Insurance Commissioner Ricardo Lara has issued a Cease and Desist Order against Innovative Partners, LP for operating as an unauthorized insurance entity in the state. This action follows allegations that the company was selling misleading health insurance coverage.
The California Department of Insurance has also identified ten additional entities and individuals linked to Innovative Partners in this operation. Lara emphasized the importance of consumer protection, stating that Californians deserve reliable health coverage that meets their needs.
Reports from consumers indicated issues with denied claims despite having purchased health coverage from Innovative Partners. The investigation found that since 2023, the company had been marketing limited or non-existent health insurance disguised as comprehensive plans. Many individuals believed they were purchasing legitimate policies from Covered California or well-known insurers like Blue Shield or Aetna, only to discover that their coverage was either minimal or non-existent.
Specific cases highlighted include a consumer left with over $1,700 in unpaid medical bills despite assurances of coverage for mental health appointments, and a small business owner facing about $11,000 in debt after being misled regarding emergency room visit coverage.
Innovative Partners falsely represented its offerings as a single-employer health insurance plan under the Employee Retirement Income Security Act of 1974, claiming to provide a “Small Employee Benefit Plan” to individuals who were not actually employees or partners of the company.
The Department of Insurance has urged consumers who purchased policies through Innovative Partners or associated entities to reach out for assistance at (714) 712-7600. Additionally, Cease and Desist Orders were issued to individuals and organizations connected to this scheme, including Arman Motiwalla, Amani Shokry, Jimmie Sutton, Omar Kasani, Group Resources, First Health Network, MultiPlan Inc., PHCS, Marpai Administrators LLC, and Teledoc Health Inc.
