Founded in 2013 and based in St. Joseph, Missouri, Medical Cost Sharing, Inc. (AKA: MCS) is now under federal examination over allegations of multi-year fraud. Federal officials have closed down the company’s operations, alleging that while the group collected approximately $7.5 million in membership fees, a mere 3.5% was used to assist members with healthcare costs.
Founders James L. McGinnis and Craig. A Reynolds are under particular scrutiny, with accusations of diverting a significant chunk of these funds for personal gain, including a direct transfer of at least $4million to their individual bank accounts.
Federal authorities have seized assets, such as their homes, suspecting them to be tied to wire fraud and money laundering activities. Although neither of the founders have been charged yet, they both maintain their innocence.
The January 2023 court order brought all operations of the organization to a halt, including the MCS website, mcsmedicalcostsharing.com. The investigation is ongoing, and more details are expected to emerge.
The Alliance of Health Care Sharing Ministries (AHCSM), whose goal is to safeguard the integrity of the broader HealthShare industry, has voiced concerns over the potential ripple effects the investigation might have on legitimate Health Care Sharing Ministries (HCSM). In a statement, the AHCSM clarified that MCS was neither federally recognized as an HCSM, nor affiliated with the AHCSM or the Health Care Sharing Accreditation Board (HCSAB).
Read the preliminary injunction order here.
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