FRANKFORT, Ky. - A judge began hearing arguments Wednesday in a case pitting state insurance regulators and a Christian group offering a medical cost-sharing program.

The state regulators are trying to bar Christian Care Ministry from offering the program in Kentucky.

Franklin County Circuit Judge Thomas Wingate began hearing arguments during a bench trial to consider a request by the Kentucky Office of Insurance for a permanent injunction banning Christian Care Ministry from doing business in the state.

The state has had a long-standing legal dispute with Christian Care Ministry's Medi-Share program, which is available only to Christians. Medi-Share's chief executive, E. John Reinhold, has said the plan is based on the Biblical belief that Christians should take care of one another's needs.

Rick Masters, an attorney for Medi-Share, has said the organization isn't an insurer and is not subject to the same regulations as insurance companies. However, he said, even if the judge disagrees with that, the group is exempt from state regulations under a measure passed by the Kentucky General Assembly about a decade ago.

Medi-Share, based in Melbourne, Fla., excludes non-Christians because their lifestyles can result in unnecessary medical care. Participants can't smoke, use illegal drugs or abuse alcohol. They're also not allowed to enroll if they have pre-existing conditions like heart disease, diabetes or cancer.

Masters has said the organization has 19,000 participating households, representing about 50,000 people. He said 300 of those households are in Kentucky.

Vicki Glass, spokeswoman for the Kentucky attorney general's office, has said her office has investigated no complaints.

The state Office of Insurance has warned in public statements that Medi-Share isn't health insurance, and that they might have to pay their own medical bills if the organization fails to meet its financial obligations.

The Christian Care Ministry, according to its Web site, was organized in July of 1993 as a division of the American Evangelistic Association, a group made up of churches, pastors, missionaries and trained laity.

Kentucky, according to the Web site, is one of seven states that doesn't require such organizations to operate under the regulations that govern insurance companies. But the organizations are required to publish a disclaimer saying the medical plan "is not issued by an insurance company nor is it offered through an insurance company."

The disclaimer goes on to say "whether anyone chooses to pay your medical bills will be totally voluntary" and that the program "should never be considered a substitute for an insurance policy."

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ROGER ALFORD
Associated Press

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