Health Insurance Innovations, Inc. (HIIQ - Snapshot Report) in association with Indiana based HCC Life Insurance Company– a subsidiary of HCC Insurance Holdings Inc. , recently introduced a new short-term medical plan (STM) HealtheMed STM.
HealtheMed STM is designed to cater customers in need of a short term affordable medical coverage. With maturity spanning from six to eleven months, the plan targets newly employed individuals, early retirees, recently naturalized citizens, personnel in-between jobs, and recent college graduates. The customizable, superior quality and affordable attributes of the plan will attract more customers which we expect to elevate revenues going forward. The new policy will be launched in 45 states across the U.S.
With the implementation of the Affordable Care Act in 2014, Health Insurance Innovations is expecting increased competition as demand for health insurance increases. A number of new entrants in the health insurance market or a product portfolio expansion of existing players is likely. Thus with ACA execution at the doorstep, launch of the HealtheMed plan will secure the company’s competitive position.
In order to fortify its short-term medical plan portfolio, Health Insurance Innovations had previously introduced HIIQuote's 'Options Page' in May 2013. This page allows easy bundling of Short-term medical plans and HII’s ancillary products. It will allow customers to select policies from a suite of options and benefit levels that satisfy their budget.
On the same date, Health Insurance Innovations partnered with Cigna Corporation (CI - Analyst Report) and Nationwide Insurance to provide two new ancillary products – Cash Advantage Critical Illness and Foundation Dental, respectively.
However, the company will have to check rising operating expenses so as to not mar the top-line strength and consequently pressurize margins. We currently have a Zacks Rank #4 (Sell) on Health Insurance Innovations. Among other favorable names, StanCorp Financial Group Inc. (SFG - Analyst Report) carries a Zacks Rank #1 (Strong Buy) and appears impressive.