The Arizona Department of Insurance and Financial Institutions (DIFI) has issued a cease-and-desist order against RespondersHealth LLC, accusing the company of selling unlicensed health insurance under multiple business aliases.
The enforcement action follows consumer complaints alleging the company denied claims tied to active health insurance policies. DIFI said its investigation confirmed the allegations and found RespondersHealth had never been granted a certificate of authority to sell health insurance in Arizona.
According to the order, records subpoenaed from a claims administrator showed RespondersHealth failed to pay its share of several consumer claims. The administrator also provided plan documents and summaries that regulators said supported their findings.
RespondersHealth CEO Jason Spreitzer told regulators under oath that the company operated as a nonprofit, self-funded plan under Missouri law and was exempt from annual filings because it had fewer than 50 members nationwide. He placed responsibility for unpaid claims on third parties, including the claims administrator and a company called HomeSmart. But HomeSmart later told regulators it did not sponsor employee coverage.
Spreitzer also testified that Arizona-based RespondersHealth entities were inactive and that a Missouri entity, Health365 Plus, had been dissolved. However, DIFI said Health365 Plus continues to advertise health insurance online.
Regulators said RespondersHealth failed to provide requested documents, including ERISA filings, sponsorship agreements, and dissolution records. The order requires the company to immediately stop doing business in Arizona, refund all premiums collected from state residents, and supply regulators with cancellation notices, customer lists, and producer records.
“A company that misrepresents an unlicensed product as insurance is breaking Arizona law,” said DIFI interim director Maria Ailor. “We will continue to take action against those who illegally conduct insurance business and deceive the public.”
Attempts to reach RespondersHealth for comment were unsuccessful, according to BestWire.
The Arizona case underscores growing regulatory scrutiny of unlicensed health plans and misuse of self-funded arrangements under the Employee Retirement Income Security Act (ERISA). In recent years, state regulators nationwide have stepped up enforcement against companies marketing unapproved health products, particularly those targeting small groups, retirees, or niche professional communities.
These schemes often claim ERISA exemptions or nonprofit status to bypass state oversight but leave consumers exposed when claims go unpaid. For insurers and brokers, the case highlights ongoing risks in distribution channels and reinforces the importance of verifying that any health plan marketed to clients has the proper authority to operate.
