The Medicare product market looks good.
The major medical looks more challenging, but maybe higher prices will create opportunities for other health-related products.
For eHealth, the first company to figure out how to sell substantial amounts of private health coverage through the Web, the arrival of competition from the Patient Protection and Affordable Care Act (PPACA) exchange system has been challenging: The company was not able to help customers sign up for exchange plan subsidies during the first open enrollment period, and the second open enrollment period was also challenging.
Now, every summer, it has to deal with PPACA rules that sharply limit major medical coverage sales outside the open enrollment period.
The company reported $3.6 million in net income for the third quarter on $38 million in revenue, compared with $1.5 million in net income on $41 million in revenue for the third quarter of 2014.
The number of individual and family major medical applications fell to 22,500, from 23,800 in the third quarter of 2014, and the number approved for coverage during the quarter fell to 23,700, from 28,100.
The company has been focusing more on the sales of Medicare plans, and the number of customers with Medicare plan coverage increased to 182,700, from 121,300 a year earlier.
Health Insurance Innovations, a company that focuses on selling short-term medical insurance and supplemental insurance products, is reporting $1.5 million in net income for the quarter on $26 million in revenue, compared with a $612,000 net loss on $23 million in revenue in the third quarter of 2014.
The total number of policies in force increased 32 percent year-over-year, to 137,000, and the number of applications submitted increased 55 percent, year-over-year.
The Medicare Advantage open enrollment period started Oct. 15 and will run until Dec. 7.