The California Department of Insurance (CDI) issued a cease-and-desist order to Innovative Partners LP, stating the company operated illegally as an insurance provider and sold health coverage without required certification.
The CDI also served ten additional cease-and-desist orders to entities accused of supporting Innovative Partners LP, including provider network vendors, third-party administrators, and care providers.
Innovative Partners, established in Texas in 2021, operated from Florida as a non-admitted carrier and lacked authorization to conduct business in California.
According to the order, the company promoted what the CDI described as “phony” single-employer health insurance plans, which had no participants at the beginning of 2023 but exceeded 14,000 by the end of the year.
The CDI indicated that the figure of 14,000 policies may understate the total number of victims.
The regulator received its first complaint about Innovative Partners in 2024. Most subsequent complaints alleged the company misled customers into believing they were buying comprehensive coverage, while the plans sold were limited in scope or did not provide any coverage.
According to the CDI, consumers reported that the company falsely represented its sales agents as representatives of Covered California, the state’s official marketplace, and claimed the plans were underwritten by Aetna or Blue Shield.
Many victims only realized the deception when they sought medical care and were billed, discovering that the coverage was limited or absent.
The CDI further stated that Innovative Partners attempted to conceal its activities by presenting the plans as health insurance from a “small employee benefit plan,” although none of the consumers worked for the company.
Insurance Commissioner Ricardo Lara commented that Californians should be able to rely on the health coverage they purchase and that selling insurance without proper licensing violates the law and endangers consumers’ health and finances.
