On May 7, a Maryland state court issued a ruling reversing the state insurance department's enforcement action against CMM Christian Medical Mission (CMM), a medical expense-sharing organization affiliated with Logos Missionary Church (President Do Won Park).
The decision is significant because it clarifies the distinction between religiously motivated healthcare sharing ministries and commercial insurance businesses, and is a victory for the government's religious freedom challenges.
CMM has been operating medical cost-sharing ministries across the United States, including Maryland, since 1996. In 2014, the organization received confirmation from the federal Centers for Medicare and Medicaid Services (CMS) that it met the requirements to be exempt from the Affordable Care Act (ACA) penalty.
However, in 2020, the Maryland Insurance Administration (MIA) launched an investigation into all Health Care Sharing Ministry organizations in the state, and in June 2024, the Maryland Insurance Commissioner found that all Health Care Sharing Ministry organizations, including CMM, were operating an unlicensed insurance business, and ordered CMM to, among other things, cease accepting members, submit a membership roster, and terminate all Maryland resident members.
However, the court reversed the Department of Insurance's action on two main grounds. First, the court found that "under Maryland law, insurance requires two essential elements: the assumption of risk and a legally enforceable right to payment, both of which CMM lacks."
The decision is that CMM does not cover members' medical expenses, but merely brokers voluntary donations based on religious beliefs.
The number of participants is not a "large group" compared to the 6.2 million residents of Maryland, and the company did not hire adjusters or auditors to assess or diversify risk.
Second, the court stated that the Department's actions "impose a substantial burden on CMM's religious exercise," which is subject to strict scrutiny under the First Amendment. But the Department of Insurance did not meet these standards.
Specifically, the court found that the Department of Insurance's "selective enforcement" of CMM while granting exemptions to other cost-sharing organizations by entering into a Consent Order violated religious freedom.
The ruling allows CMM to continue its medical cost-sharing ministry in Maryland. The court ordered the Department of Insurance to rescind all orders regarding enforcement actions and waive court costs.
With the Maryland Department of Insurance dropping its appeal, CMM believes the ruling sets an important precedent that limits government interference in health care sharing ministries based on religious beliefs.
Source: The Christian Journal (https://www.kcjlogos.org)
