Following an investigation by 12News, it came to light that certain companies providing medical coverage for retired firefighters and executives were operating unlawfully in Arizona.
Phoenix – The Arizona Department of Insurance and Financial Institutions found that the Light Blue Line Benefits Association was illegally selling insurance in the state.
This organization aimed at first responders who were not yet old enough for Medicare but were looking for affordable health coverage after retirement. They claimed to “fill the gap” until the retiree turned 65 and became eligible for Medicare. Despite collecting millions in premiums, many members reported that they hadn’t received payments for medical expenses.
A state investigation indicated that 4,682 individuals in Arizona were enrolled with Light Blue Line, contributing nearly $5.9 million in premiums.
An order was issued by the insurance regulator on Wednesday, mandating the suspension and termination of the Light Blue Line’s operations in Arizona. Additionally, they were instructed to return “unearned premiums” within 30 days.
12News was unable to reach anyone from the Light Blue Line for comment, but they’ve claimed in previous lawsuits that they qualify as a “society health plan” and as an “employee organization,” which supposedly exempts them from needing an Arizona license. They argue that state insurance laws do not apply to them.
However, since the members of the Light Blue Line are retirees rather than employees, state officials noted that the organization failed to substantiate its claims of being an “employee organization.”
The Light Blue Line is not registered with the Arizona Corporation Commission and lacks the necessary license or certificate to conduct insurance business in the state, according to the Department of Insurance.
This situation constitutes unauthorized insurance transactions in Arizona, which is classified as a Class 5 felony.
Though the Light Blue Line is based in Texas, it operates across multiple states. A similar declaration made by the Ohio Department of Insurance around late June also sought to prohibit the company from conducting business there.
Consumers are urged to explore health insurance resources available on the DIFI website.
For inquiries regarding the Light Blue Line, individuals can reach out to the Consumer Services department at (602) 364-3100 or contact them through their website.
