Healthcare Sharing Ministries Litigation: Aliera Companies, Trinity HealthShare, and Sharity HealthShare

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Background: The Aliera Companies, Inc. and Trinity/Sharity HealthShare, Inc., were two companies that purported to design, market, sell and administer healthcare sharing ministry health plans. A third company, Unity Healthshare, was also involved.

Sirianni Youtz Spoonemore Hamburger, along with five other law firms, filed class action lawsuits against Aliera and Trinity for selling and administering health plans that did not comply with state and federal laws. Copies of the lawsuits can be found here (Washington), here (Colorado), here (Missouri), here (California) and here (Kentucky) Two of the cases resulted in judgments against Aliera, which can be viewed here (Washington), and here (Kentucky).

State regulators also took action against Aliera and Trinity/Sharity for the sale of unauthorized health plans. This can be found here.

Sharity and Aliera Bankruptcies: On July 8, 2021, Sharity Healthshare (formerly known as Trinity), filed for bankruptcy in Delaware. See BMC Group - General Information. Ultimately, a Plan of Liquidation was confirmed by the Bankruptcy Court. See deb_1-21-bk-11001_343_0-2.pdf (bmcgroup.com). Under the Plan, Sharity Healthshare was dissolved and the Sharity Liquidating Trust was formed and a Trustee and Trust Board was appointed to pursue the claims that Sharity had against third parties, for the benefit of Sharity’s creditors, the vast majority of whom were people who purchased Sharity health plans.

On December 3, 2021, an involuntary bankruptcy petition was filed against Aliera in Delaware. A Plan of Liquidation was recently preliminarily approved by the Bankruptcy Court and a Plan of Liquidation and Disclosure Statement was distributed to Aliera’s creditors. The Plan is here, and its exhibts are here and here. A hearing on whether to confirm the Plan of Liquidation will be held on August 14, 2023, at 11 am before the Honorable Thomas M. Horan, at the U.S. District Courthouse, 824 North Market Street, 5th Floor, Courtroom 7, Wilmington, DE 19801.

The Plan establishes the claims of individuals enrolled in Unity Healthshare while it was administered by Aliera as a separate “class.” The Plan values the class claims of these Unity Class Members at $297,903,437.00. This represents the total monthly payments received by Aliera on behalf of Unity Healthshare members.
The Plan also establishes the claims of people who were enrolled with Trinity/Sharity while it was administered by Aliera, who are represented by the Sharity Liquidating Trust. The Sharity Members’ claims are valued at $362,764,161.00. The Unity Class Claims and Sharity Claims are called “Member Claims.” At this time, neither Sharity nor Unity members need to take any further action to protect their claims in the Aliera Bankruptcy.
A class of trade creditor claims (“Trade Claims”) is also established.
The Plan provides that after payment of all Allowed Administrative Claims, Priority Tax Claims, Class 1 other secured claims and class 2 Unsecured Priority Claims, following the establishment of a Trust Expense Fund, Member Claims and Trade Claims will be paid as follows to the extent funds are available in the Aliera Liquidating Trust:

The first $2,500,000 shall be distributed to Trade Claims on a pro rata (percentage) basis.
The next $6,000,000 shall be distributed to Member Claims claims on a pro rata basis.
Any remaining funds shall be distributed 60% to Member Claims and 40% to Trade Claims on a pro rata basis; however, once Trade Claims receive 75% of their allowed claims, then all remaining funds go to Member Claims until they receive 75% of their allowed claims. After that, funds shall be distributed 60% to Member Claims and 40% to Trade Claims on a pro rata basis until they are paid in full.

Counsel for the Aliera Trust, including the Unity Class Counsel, will be paid according to retention agreements between the Aliera Liquidating Trustee and the law firms. No Sharity or Unity Member will have to pay attorneys’ fees for any counsel for the Aliera Trust or the Sharity Trust.