A Tennessee judge has ordered the closure and liquidation of two health providers sanctioned by regulators across the US for allegedly failing to provide adequate services to customers.

Davidson County Chancellor Ellen Hobbs Lyle issued the order against Springfield, Tenn.-based American Trade Association and its subsidiary, Smart Data Solutions, according to the Tennessean. The judgment comes after state regulators accused the two firms of collecting nearly $22 million from consumers nationwide, but leaving many with unpaid bills for doctors' visits and surgeries.

Recently, Maine and New Hampshire's insurance departments joined several other states in issuing cease and desist orders against the companies, ordering refunds for consumers and payment of medical claims.

Several states said the companies, and its officers, were unlicensed to sell what they were deeming insurance to residents and used misleading statements in their presentations to customers.

The Tennessee ruling could allow state regulators to pay some of the millions in unpaid medical bills, according to the report, but the owner of the companies, Bart S. Posey, told the newspaper he plans to appeal. That appeal could postpone distribution of funds.

Posey said his companies did nothing wrong and said he was "victimised" by a Bermuda-based insurer that did not live up to a contract to underwrite ATA's health plans.

Earlier this year, Richard Bachman, one of the ATA officers cited in state regulator sanctions, told IFAwebnews.com that claims and vendors are being paid "on time and properly" by ATA and that its contract with Bermuda-based Andone Insurance Co. would help "resolve the outstanding issues in the favour of ATA." Bachman did not immediately respond to a request for comment on the ordered liquidation of the companies.