Texas Judge Blocks Unlicensed Health Plan

Byrne also froze the unauthorized insurer's bank accounts and placed its books, records, assets and other funds under the control of Texas Insurance Commissioner Jose Montemayor, according to the Texas department.

ABP provides health coverage primarily under contracts with employers, according to the department.

"As medical costs rise, we are seeing a resurgence of unlicensed health plans that attempt to entice employers with lower-than-market rates," Montemayor said. "These plans by-pass the normal licensing process for a reason — and it's not a good one. Invariably, unlicensed health plans stop paying claims and leave their members with stacks of unpaid medical bills. It's extremely important for employers to verify that a plan is licensed before signing up and paying premiums for coverage that may not be there when their employees need it."

Employers and consumers can verify whether a health care plan or other insurer is licensed in Texas by calling the Texas Department of Insurance's toll-free consumer help line at 1-800-252-3439.