Settlement Reached with Jericho Health Share for Regulatory Noncompliance

The Department of Financial Services (DFS) has announced a significant settlement with House of Prayer and Life, Inc., operating as Jericho Share or Jericho Health Share. The organization will pay a $250,000 penalty to New York State and issue over $35,000 in refunds to policyholders. This action comes after an investigation revealed that Jericho had been functioning as an unlicensed insurance entity, compromising regulatory compliance requirements. By operating without a valid license, Jericho engaged in extensive marketing of misleading health care sharing plans, impacting over 13,900 contracts since 2021.

New York's Insurance Law requires that all entities offering insurance hold a valid license issued by the department, which Jericho failed to secure while conducting business on state and federal health insurance exchanges. Evidence indicated that Jericho's materials included disclaimers deliberately designed to circumvent state insurance regulations, using AI-driven marketing strategies to mislead providers and consumers. Importantly, licensed insurers in New York must allocate 82% of premiums to member benefits, but Jericho allocated only 12.5% and 10.6% in 2021-2022 and 2023, respectively.

Under the settlement terms, Jericho is mandated to halt operations in New York, except for activities necessary to comply with the consent order. This includes issuing refunds and canceling contracts by March 19, 2026. Members enrolled as of December 19, 2025, are entitled to a one-month premium refund. Furthermore, Jericho is required to resolve any outstanding claims for medical expenses related to its New York members, ensuring future compliance and risk management within the industry. For further details, the complete consent order is accessible on the Department’s website.