Oregon regulators issue cease-and-desist order to ClearShare Health
SALEM, Ore. (KTVZ) -- The Oregon Division of Financial Regulation (DFR) has issued a cease-and-desist order to ClearShare Health and its affiliates for operating as an insurance business in Oregon without a certificate of authority.
DFR found the entities were providing services without a third-party administrator license, which violates the Oregon Insurance Code.
The DFR investigation, which began in January 2026, determined ClearShare Health was running a cost-sharing program it called "memberships."
Under this program, consumers pay a monthly amount into a pool of money that is used to pay out members' medical costs. The division noted the requirement for businesses to comply with the Oregon Insurance Code.
ClearShare Health's affiliates named in the order include Clearwater Benefits LLC, Clearwater Benefits Administrators LLC and Clearwater Benefits Holdings LLC.
An order was also issued against Douglas Sherman, a co-founder of Clearwater Benefits LLC. ClearShare offers various tier levels that determine what medical expenses may be covered. People with pre-existing conditions or who are older than age 65 typically cannot participate in ClearShare's program.
The cease-and-desist order bars ClearShare Health and its affiliates from transacting insurance in Oregon. This includes marketing, offering, or selling ClearShare Health memberships to Oregon residents and soliciting, collecting, or receiving any payments from Oregon residents for new or renewed memberships. The order also prohibits representing that ClearShare Health memberships are not subject to regulation and oversight by DFR.
The order does allow these entities to continue to administer and pay medical expense submissions arising from ClearShare Health memberships that were in effect as of April 14, 2026. This measure ensures affected Oregon consumers can still have their medical expense submissions considered under their existing memberships.
This action is part of DFR's ongoing efforts to pursue entities offering health insurance or marketing products that function as health insurance but are not properly licensed. DFR verifies that insurance companies are solvent and comply with Oregon law.
DFR began its review of ClearShare after receiving multiple consumer complaints. The division notes that unlicensed activities weaken the licensed, commercial risk pool by removing members from that pool.
The DFR has previously warned consumers about a rise in fraudulent activity due to changes in the health insurance market. This warning was issued in a press release in January.
DFR reminds consumers to research each plan to ensure it provides needed coverages and is in full compliance with the Affordable Care Act. The DFR's website offers tools to check licenses, answer questions and file a complaint. Consumers can also call 888-877-4894 (toll-free) or email dfr.insurancehelp@dcbs.oregon.gov to speak with a health insurance advocate.
