For Consumers

Kreidler fines unauthorized health insurer $100,000

Makina Health sold employer health insurance plans to small businesses

Contact Public Affairs: 360-725-7055

November 10, 2021

OLYMPIA, Wash. – Insurance Commissioner Mike Kreidler issued a $100,000 fine against Makina Health, an unauthorized insurer based in Texas that was illegally selling employer health insurance plans to small businesses in Washington state. The company has until Nov. 29 to pay the fine. 

Kreidler’s office opened an investigation after receiving inquiries from two licensed insurance producers asking if Makina was authorized to sell employer group plans in Washington state. Kreidler’s investigators found that Makina was not licensed to sell insurance or authorized to act as an insurer in Washington state.  

As part of the investigation, Kreidler’s office contacted Makina, insurance producers who sold Makina products and the 28 employers that bought policies from Makina. Investigators found that the employers believed they had purchased health insurance from Makina. They found that some insurance producers understood the products to be self-funded, while others understood the policies to be pooled funds. Ultimately, neither the employers nor the producers who sold the products could identify who was responsible for paying claims. 

From Makina's inception in October 2018 through February 2020, it sold plans to 28 Washington employers covering a total of 572 employees and collected $1.1 million in premiums.  

Kreidler’s office oversees Washington’s insurance industry to ensure that companies, agents and brokers follow state laws. Since 2001, Kreidler has assessed more than $35 million in fines, which are deposited in the state's general fund to pay for state services. 

The Office of the Insurance Commissioner publishes disciplinary orders against companies, agents and brokers. You can search by name or the year they took effect.

For an insurance question or complaint, contact Kreidler’s consumer advocates online or by phone at 800-562-6900.