Receivership Order Issued Against Meritus Health Insurers

Printable Version

Phoenix – The Maricopa County Superior Court today issued an Order for Appointment of Receiver and Injunction against two Arizona health insurance companies, Compass Cooperative Health Plan, Inc., a health care services organization doing business as Meritus Health Partners, and Compass Cooperative Mutual Health Network, Inc., a disability insurer doing business as Meritus Mutual Health Partners.  Arizona Department of Insurance (ADOI), Interim Director, Leslie Hess, filed suit against the health insurers on August 1, 2016, requesting that the Court find both companies insolvent and issue an order appointing the Director of ADOI as the receiver for both companies. 

Both companies were placed under supervision by the Director of ADOI on October 30, 2015.  As a result, the companies were ordered to stop writing new and renewal business as of December 31, 2015.  With the issuance of the Director’s supervision order, Meritus enrollees were eligible to participate in open enrollment to obtain other health insurance for plan year 2016.

Under the Department’s Supervision, both companies have been winding down their operations and paying provider claims (hospitals, doctors, etc.).  However, the companies ran out of money and were unable to continue to pay provider claims without liquidating assets.  The Director sought an Order of Receivership to be able to liquidate the companies’ assets in order to pay provider and creditor claims in accordance with Arizona law. 

“Requesting the Court issue an order placing any company into receivership is not an easy step for me to take,” said Interim Director Leslie Hess.  Our agency’s number one priority is to protect the citizens of Arizona and I believe this order is necessary to do just that.” 

Meritus was incorporated December 7, 2012, as a nonprofit corporation and was one of the original 23 consumer operated and oriented plans (CO-OPs) that were formed around the country to offer health insurance.  The two Meritus companies provided health insurance coverage for approximately 59,000 Arizona residents in Maricopa, Pima and Pinal counties.

Copies of the Complaint and the Receivership Order are available on the Department’s website under the Meritus link.

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About the Arizona Department of Insurance

The Arizona Department of Insurance, an agency of the State of Arizona, is responsible for the education and protection of insurance consumers and for oversight of the insurance industry in this state.

CV2016-011872: Meritus Insurers; COMPLAINT

Verified Complaint for Appointment of Receiver and Injunction

CV2016-011872: Meritus Insurers; RECEIVERSHIP ORDER

Order for Appointment of Receiver and Injunction

Meritus Health Insurers in Receivership, Common Questions and Answers

Answers to frequently asked questions concerning Meritus Health Partners, In Receivership, and Meritus Mutual Health Partners, In Receivership.

Health Insurance Telemarketers Annoy; Pose Fraud Risks

Phoenix, AZ—The Arizona Department of Insurance (ADOI) wants to make citizens aware of scams involving aggressive telemarketers attempting to sell health insurance plans and, in some cases, attempting to gain personal and financial information possibly for criminal purposes.

The ADOI has received complaints from people who received multiple phone calls, robocalls, and text messages claiming to be from the National Health Enrollment Center, the Healthcare Enrollment Center and from Healthcare.gov. Some people report that they were contacted multiple times a day, sometimes from different phone numbers, despite requests to be placed on the companies' do-not-call lists. Additionally, some people report having been asked to provide health insurance enrollment information, including such information as address, date of birth, social security number, and personal health information that, in the wrong hands, could be used in identity theft or other fraud schemes.

Arizona citizens who have received persistent phone calls or text messages from these or other callers attempting to sell them health insurance are encouraged to file a complaint with:

Federal Trade Commission (FTC)

Arizona Department of Insurance Consumer Protection Division

  • Visit https://insurance.az.gov/consumers
  • Or call the ADOI’s Consumer Protection Hotline at 602-364-2499, or 1-800-325-2548 if calling within Arizona but outside Maricopa County.

We can all take steps to avoid becoming victims of fraud.

  • Never provide someone who calls you with your bank account number, your social security number, your credit card number, or your personal health information. If you are asked to provide this information, hang up.
  • Research the insurance agent and insurance company you are considering using by finding their license information through the ADOI’s License Search webpage (https://insurance.az.gov/license-search), and use contact information in the license record to contact them. Be skeptical and do research.
  • For information about insurance available from Health Insurance Marketplace, visit the Healthcare.gov website or call Healthcare.gov directly at 1-800-318-2596. The Arizona Department of Insurance is a state agency dedicated to protecting Arizona citizens and businesses by promoting a safe, strong, innovative and competitive insurance marketplace.

The Arizona Department of Insurance is a state agency dedicated to protecting Arizona citizens and businesses by promoting a safe, strong, innovative and competitive insurance marketplace.

Regulatory Bulletin 2019-01

Use of Credits and Premium Rebates in the Health Insurance Market 


Arizona Sample Notice of Continuation Coverage (Mini-COBRA)

Pursuant to ARS § 20-2330, a health benefits plan issued or renewed after December 31, 2018, must allow an enrollee and any qualified dependent to continue coverage after a qualifying event.  The law requires a small employer (with an average of at least 1 but fewer than 20 employees) to notify an enrollee in writing of the right of the enrollee and any qualified dependents to continue coverage under the employer's health benefits plan upon an enrolee's qualifying event.  Pursuant to Subsection C of the law, the Department has prepared a sample notice of coverage continuation form and is making the sample available on its website.  A small employer that uses, properly completes, and timely issues the Department's form is presumed to satisfy notification requirements.  On January 23, 2019, the Department uploaded a new version of the form.