Salvasen Health is bankrupt in Texas after the state insurance department ordered the Houston-based payer to stop selling health plans on April 26.
The order took effect immediately and was issued to owner and CEO Barry Glenn because the company was selling plans without a state license.
Salvasen and Mr. Glenn are barred from applying for an insurance license in Texas for 10 years.
The state said it received numerous complaints about Salvasen’s plan and the fact that it did not provide the promised coverage to members.
The company agreed to end all plans at the end of March and began shutting down.
Salvasen must continue to pay claims until all obligations are met and refund premiums collected from consumers if funds or assets remain.
Salvasen marketed health insurance products nationwide and sold about 65,000 unauthorized health plans, according to a Texas Department of Insurance press release.
In March, the payer was banned from Wisconsin after selling health plans that did not comply with the ACA. Minnesota and Nevada have also taken action against the company.
Texas members must continue to submit claims in accordance with the Salvasen Insurance Plan documents. A special enrollment period ending June 9 will allow those affected to get a new plan for 2022 coverage in the federal market.