Salem, Ore. – The Oregon Division of Financial Regulation (DFR) has issued a cease-and-desist order against ClearShare Health and several affiliated companies, alleging they operated an unauthorized insurance-like program in Oregon without proper licensing.
According to DFR, ClearShare Health, along with its affiliates—Clearwater Benefits LLC, Clearwater Benefits Administrators LLC, and Clearwater Benefits Holdings LLC—offered a cost-sharing program that functioned as insurance but did not obtain the required certificate of authority. Regulators also allege the entities provided administrative services without securing a third-party administrator license, in violation of the Oregon Insurance Code. The order also names Douglas Sherman, co-founder of Clearwater Benefits LLC.
DFR’s investigation, which began in January 2026 following multiple consumer complaints, found that ClearShare’s program required members to pay monthly contributions into a shared pool used to cover medical expenses. The company offered different tier levels that determined coverage eligibility, though individuals over age 65 or with pre-existing conditions were generally excluded.
Under the cease-and-desist order, ClearShare Health and its affiliates are prohibited from conducting insurance-related activities in Oregon. This includes marketing or selling memberships, collecting payments from Oregon residents, and representing that their products are exempt from state regulation.
However, the order allows the companies to continue processing and paying medical expense claims tied to memberships that were active as of April 14, 2026. This provision is intended to ensure that current Oregon members can still have their claims reviewed under existing agreements.
State regulators emphasized that the enforcement action is part of broader efforts to address unlicensed entities offering products that resemble health insurance. DFR works to ensure insurers operating in Oregon meet financial solvency requirements and comply with state laws designed to protect consumers.
Officials also warned that unlicensed programs can undermine the regulated insurance market by drawing participants away from licensed risk pools, potentially destabilizing coverage systems. The agency noted an increase in questionable or fraudulent health coverage offerings amid ongoing changes in the insurance market.
DFR is urging consumers to carefully research health plans to confirm they meet coverage needs and comply with the Affordable Care Act. Resources for verifying licenses, filing complaints, or speaking with a health insurance advocate are available through the agency, including a toll-free helpline at 888-877-4894 and email support at dfr.insurancehelp@dcbs.oregon.gov.
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