AZ insurance regulator asks state attorney general to investigate Thin Blue Line

PHOENIX — The above video aired on a previous broadcast.

Thousands of retired first responders and their family members paid Thin Blue Line Benefits Association for health care coverage, but some found their medical bills were not getting paid. 

Now, the Arizona Department of Insurance and Financial Institutions has ordered Thin Blue Line to pay claims under the contracts it made, but regulators are not clear if the company has the money available. 

“As (Thin Blue Line) is not an Arizona-licensed insurance company, the Department is unable to determine whether the company has sufficient assets to pay all outstanding or future claims,” the department wrote on a newly created Frequently Asked Questions webpage. “Thin Blue Line is responsible for paying any claims arising out of health care benefits contracts  issued to Arizona consumers, but this does not guarantee payment.” 

The state regulator’s investigation found more than 4,600 members in Arizona paid nearly $6 million in premiums to the company since the beginning of the year, though it is not clear how many outstanding claims the company has yet to pay back. 

Last Wednesday, DIFI issued a Cease and Desist order, demanding Thin Blue Line stop operations in Arizona and inform its customers that their plans are cancelled within 30 days. DIFI has also asked the Arizona Attorney General to investigate possible consumer fraud violations. 

Thin Blue Line is required to send cancellation notices to all members with an effective cancellation date by mid-August. Monthly premiums could be due before retirees receive that notification. 

State regulators said that “existing health care benefits contracts remain in force until the contract holder has been notified that the contract has been canceled.” 

Regulators also demanded that Thin Blue Line pay back “unearned premiums,” but regulators do not know at this time whether the company has the funds available. The state said it could not give individual advice about paying premiums, but several retirees have told the I-Team they do not plan to give Thin Blue Line any additional funds. 

Former Thin Blue Line members may qualify for a Special Enrollment Period through the Healthcare.gov marketplace because of the sudden cancellation of the plans. 

Former members could also contact an independent insurance broker to help identify insurance plans that are available now, and members of the  Arizona Public Safety Personnel Retirement System may email [email protected] for guidance on getting insured. 

For those who have a spouse who is employed, it may be worth considering joining the spouse’s employee plan. 

More information is available here.

The 12News I-Team spoke with insurance experts and attorneys, who said it’s important for members with outstanding medical bills to work with their providers and ensure. 

Depending on the circumstance, former Thin Blue Line members may qualify for a hospital’s Charity Care to cover medical bills. 

The Arizona insurance department also stated that its order requires Thin Blue Line to “pay all outstanding obligations under existing health care benefits contracts until they are canceled.” 

Still, as previously mentioned, this order does not guarantee the company will pay. 

If you believe that you were a victim of fraud, you may contact the Arizona Attorney General’s Office’s Consumer Fraud Division at (602) 542-5025 or online. 

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