Health Insurance Innovations Inc. (HII) is one of the companies giving outsiders a pinhole view of what’s really going on in the U.S. health insurance market.
HII (Nasdaq:HIIQ) is a publicly traded company that focuses mainly on developing, finding and distributing short-term health insurance, hospital indemnity insurance and other products outside the scope of the Patient Protection and Affordable Care Act (PPACA) major medical product design and marketing rules.
While weary PPACA public exchange managers let Web disclosures slide in some states, and the U.S. Department of Health and Human Services (HHS) keeps a tight grip on data for the HealthCare.gov states, HII puts its executives on conference calls with securities analysts every quarter.
HII is reporting $256,000 in net income for the first quarter on $23 million in revenue, up from a net loss of $248,000 on $18 million in the first quarter of 2014.
The number of policies in force increased 19 percent, to 102,000. Of those, 31,000 of the policies were short-term health policies; 15,000, hospital indemnity policies; and 56,000, other types of policies.
The number of call centers in the HII distribution network increased to 112, from 97, and the number of licensed brokers in the network increased to 17,800, from 14,000.
Spending on sales commissions increased to $11 million, from $8.9 million.
For a look at what Michael Kosloske, HII’s president, and other company executives said about the non-PPACA health product market, read on.
1. HealthCare.gov really did do a better job of serving its customers.
In late 2013 and early 2014, during the first PPACA open enrollment period, HealthCare.gov and many state-based exchange enrollment systems had serious technical problems.
Many market watchers said the exchange systems worked much better during the second open enrollment period, but some said many exchanges continued to perform poorly.
Michael Hershberger, HII’s interim chief financial officer, is siding with the market watchers who say the exchange systems worked better.