Washington State Suspends Benefits Now License Over Insurance Fraud Allegations
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- Washington State Suspends Benefits Now License Over Insurance Fraud Allegations
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OLYMPIA, Wash. – the Washington State office of the Insurance Commissioner (OIC), led by Commissioner Patty Kuderer, has issued an emergency order suspending the license of Benefits Now and its sole licensee, Tylor Trego, effective June 17, 2025. This action stems from their involvement in the fraudulent health insurance business of Quick Health, which has also led to federal wire fraud charges from the U.S. Attorney’s Office.
Details of the License Suspension
the OIC’s investigation revealed that Benefits Now continued the unauthorized insurance operations of Quick Health, violating multiple insurance laws and causing ongoing financial harm to consumers in Washington. The order includes a revocation of the producers’ licenses, scheduled for July 2, 2025. Benefits Now and Trego have the option to request a hearing before this date, which would temporarily halt the revocation until the proceedings conclude.
Did You Know? The Washington State Office of the Attorney General has a Financial Crimes Unit dedicated to investigating and prosecuting insurance fraud [3].
ameritas terminates Relationship
Tylor Trego, the only licensed producer for Benefits Now, had the company appointed to Ameritas Life Insurance Corp. However,Ameritas informed the OIC in May 2025 that it had terminated its business relationship with Benefits Now,which it identified as a sister company to Quick Health.
Complaints Against Quick Health and benefits Now
The OIC has received approximately 138 complaints regarding Quick Health’s improper business practices. these complaints include:
- Misrepresenting insurance plans to consumers.
- Drafting duplicate payments from customer accounts.
- Failing to provide refunds to customers.
- Using fraudulent, coercive, or dishonest tactics.
- Demonstrating incompetence or untrustworthiness.
- Representing unauthorized insurance companies.
Several complaints specifically named Tylor Trego,who was listed as a “Client Relations Representative” for Quick Health. One consumer alleged that Trego withdrew a quarterly payment two months prematurely and then disconnected his phone line when the consumer attempted to complain. Another consumer reported that an $11,305 refund promised after canceling their policy was never issued.
Pro Tip: Always verify the legitimacy of an insurance provider with your state’s insurance commissioner before purchasing a policy.
Additional Complaints Against Benefits Now
Consumers have also lodged complaints directly against Benefits Now, including:
- One consumer purchased a policy in April 2024, received a non-functional insurance card, and never received a refund despite multiple requests.
- Another consumer bought two policies that were later canceled, but an $11,726 refund was never issued.
- A third consumer paid Benefits Now for a full year of coverage,but no healthcare providers accepted the insurance,and the member ID card was never activated. This consumer was sold another plan with the same result, incurring $30,000 in charges over six months without receiving a refund.
Investigation and Unlicensed Agents
The OIC sent a notice of investigation to Benefits Now and Trego in March 2025, but received no response. Ameritas informed the OIC that Jesus Barrera, one of the four insurance agents charged by the Department of Justice, sold approximately 200 policies to Washington residents for Benefits Now without being properly licensed.
Insurance Fraud in washington State
Insurance fraud is a serious crime in Washington State, carrying both civil and criminal penalties [2]. It occurs when individuals or businesses intentionally deceive an insurance provider for financial gain. The Washington state Criminal Investigations Unit (CIU) investigates allegations of insurance fraud [1].
| Date | Event |
|---|---|
| April 2024 | Consumer purchases policy from Benefits Now, receives non-functional card. |
| May 2025 | Ameritas terminates relationship with Benefits Now. |
| June 17, 2025 | OIC suspends Benefits Now’s license. |
| July 2, 2025 | Scheduled revocation of Benefits Now’s license (subject to hearing). |
Understanding Insurance Fraud
Insurance fraud not only impacts individual consumers but also drives up costs for all policyholders. By misrepresenting details or submitting false claims, perpetrators undermine the integrity of the insurance system. This can lead to higher premiums, reduced coverage options, and increased scrutiny for legitimate claims.
The Washington State Office of the Insurance Commissioner (OIC) plays a crucial role in protecting consumers from fraudulent insurance practices. Through investigations, enforcement actions, and consumer education, the OIC works to maintain a fair and obvious insurance market.
Frequently Asked Questions About Insurance Fraud
What are some common types of insurance fraud?
Common types of insurance fraud include filing false claims, misrepresenting information on applications, and staging accidents.
How can I report suspected insurance fraud in Washington State?
You can report suspected insurance fraud to the Washington State Office of the Insurance Commissioner (OIC) or to local law enforcement.
What resources are available to help me understand my insurance coverage?
The Washington State Office of the Insurance Commissioner (OIC) offers various resources, including guides, workbooks, and assistance programs, to help consumers understand their insurance options [1].
Have you been affected by fraudulent insurance practices? What steps do you think should be taken to prevent future incidents?
Share your thoughts and experiences in the comments below and help us spread awareness about insurance fraud!
