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August 12, 2015 at 09:51 AM
Health Insurance Innovations Inc. (HII) saw soft demand for alternatives to major medical coverage in the second quarter, but growth in ancillary product sales was strong.
HII (Nasdaq:HIIQ) executives say the outlook for the future looks bright, because the company has brought in many top sales executives and sales managers, including eight regional sales vice presidents, from the Assurant Health unit of Assurant Inc. (NYSE:AIZ).
Assurant decided to shut down the Milwaukee-based health unit after the unit ran into trouble with handling major medical health claim risk under the new underwriting and product design rules established by the Patient Protection and Affordable Care Act of 2010 (PPACA).
HII is reporting a $326,000 net loss for the latest quarter on $23 million in revenue, compared with $273,000 in net income on $21 million in revenue for the second quarter of 2014.
HII has been selling products that fall outside of the scope of most or all of the new Patient Protection and Affordable Care Act (PPACA) rules that apply to major medical coverage, including short-term medical insurance, hospital indemnity insurance, and “ancillary products,” such as dental insurance, critical illness insurance and accident insurance. This quarter, HII began reporting results for its short-term medical and hospital indemnity products together under the heading of “individual and family plans.”
Submitted applications for the major medical alternative products fell 5.6 percent, to 32,000. The application count for ancillary products jumped 31 percent, to 31,700.
