A short-term medical (STM) insurance distributor is expecting new Patent Protection and Affordable Care Act (PPACA) market rules to drive business its way throughout the coming year.
Executives at Health Insurance Innovations Inc. (Nasdaq:HIIQ) talked about PPACA’s role as an STM marketing driver today during a conference call with securities analysts.
Health Insurance Innovations — a well-established company that went public in February — held the call to review its earnings report for the fourth quarter of 2013.
The company is reporting a $592,000 net loss on $16 million in revenue, compared with $674,000 in net income on $11 million in revenue for the fourth quarter of 2013.
The company ended the year with policies covering 73,686 people in force, or 15,568 more people than the policies were covering a year earlier.
The new PPACA public health insurance exchanges started their open enrollment season for individual “qualified health plan” (QHP) coverage Oct. 1. The 2014 individual QHP enrollment period is supposed to end March 31.
Exchange enrollment system glitches, and PPACA effects on individual commercial health insurance list prices inside and outside the exchange system, definitely helped application volume and sales in the fourth quarter, Mike Kosloske, Health Insurance Innovation’s president, said during the conference call.
Late last year, some STM brokers predicted that sales would slow once the public exchanges overcame the enrollment system glitches.
During the conference call, Kosloske said he thinks the individual QHP enrollment period system could give STM sales a big boost in the spring and summer.