Health benefits association company halts coverage amid Arizona investigation

PHOENIX — A company accused of unlawfully selling insurance plans to retired first responders and their families tells the 12News I-Team it will no longer offer health care coverage as of August 31. 

The decision follows a “cease and desist” order from the Arizona Department of Insurance and Financial Institutions on July 16. The insurance regulators alleged the company was not a licensed insurance company and was failing to properly provide coverage for its members. It also ordered the company to pay back some “unearned” premiums. 

The 12News I-Team first revealed complaints that Thin Blue Line Benefits was not paying claims in February.  This reporting came as the company’s partner organizations, Quilt Benefits and Cigna, cut ties, saying Thin Blue Line did not have the funds to pay claims.

MORE INFORMATION: $40,000 out of pocket: Retired Phoenix first responders want insurance to pay outstanding bills

Now, Texas-based attorney Adrienne Frazior tells 12News that Thin Blue Line is cooperating with the Arizona investigation. 

“Thin Blue Line is cooperating with the Arizona Department of Insurance to accomplish the shared goal of ensuring policyholders continue to receive the health care they need and that health care providers receive prompt payment for rendered services to policyholders,” Frazior wrote.

Some members told the I-Team they cancelled doctors’ appointments because they feared the bills would not be paid. Providers have told members that they would have to pay for care up front, because Thin Blue Line had not processed previous claims. 

Several members told the I-Team they had outstanding bills of $20,000 or more. 

MORE INFORMATION: Unlicensed health insurance provider Thin Blue Line ordered to pay members’ medical bills

The company’s attorney said that delays in paying claims was due to “complications relating to claims systems issues, the transition to a new third party administrator, and with receiving claims information.” 

She did not answer questions about the number of outstanding claims or how much money those cost. 

Frazior said in the letter that policyholders should ask any medical providers to submit documentation of unpaid claims here: [email protected]. 

“The plans offered by Thin Blue Inc. will no longer be offered as of August 31, 2025, at the end of the current plan year,” Frazior wrote. “At that time, Thin Blue Line will continue to process and pay claims incurred during the plan year, but will not offer future health care coverage for policyholders.” 

Arizona policyholders are also encouraged to contact the Arizona Department of Insurance and Financial Institutions by clicking here.  

Arizona Attorney General Kris Mayes also announced her office is investigating the allegations against Thin Blue Line. Policyholders may contact the AG’s office by clicking here.

The Arizona AG joins the Ohio attorney general in investigating the company and retired first responders’ claims of unpaid medical bills. 

>> Download the 12News app for the latest local breaking news straight to your phone.

You can now watch 12News content anytime, anywhere thanks to the 12+ app!

The free 12+ app from 12News lets users stream live events — including daily newscasts like “Today in AZ” and “12 News” and our daily lifestyle program, “Arizona Midday”—on Roku, Apple TV and Amazon Fire TV.

12+  showcases live video throughout the day for breaking news, local news, weather and even an occasional moment of Zen showcasing breathtaking sights from across Arizona.

Users can also watch on-demand videos of top stories, local politics, I-Team investigations, Arizona-specific features and vintage videos from the 12News archives.

Roku: Add the channel from the Roku store or by searching for “12 News KPNX.”

Amazon Fire TV: Search for “12 News KPNX” to find the free 12+ app to add to your account, or have the 12+ app delivered directly to your Amazon Fire TV through Amazon.com or the Amazon app.

On your phone: Download the 12News app for the latest local breaking news straight to your phone.

On your streaming device: Download 12+ to your streaming device

The free 12+ app from 12News lets users stream live events — including daily newscasts like “Today in AZ” and “12 News” and our daily lifestyle program, “Arizona Midday”—on Roku and Amazon Fire TV.

12+ showcases live video throughout the day for breaking news, local news, weather and even an occasional moment of Zen showcasing breathtaking sights from across Arizona.

On social media: Find us on Facebook, Twitter, Instagram and YouTube.