The board of eHealth Inc. has rejected proposals from companies interested in buying part or all of the web-based health insurance broker.
EHealth is the parent of eHealthInsurance.com, one of the first companies to develop a sustainable strategy for selling health coverage online.
In recent years, Affordable Care Act changes and the upheaval in the individual major medical market have hurt eHealth’s earnings. The ACA eliminated medical underwriting hassles, but eHealth has faced fierce competition for consumers’ attention, and a squeeze on commission revenue. The company’s board told investors in February that it was conducting an “extensive strategic review of the business.”
Other companies made offers to acquire eHealth, or invest in eHealth, the company said today.
But the eHealth board decided that eHealth investors will be better off if the company stays independent and sticks to its current business strategy, the company said.
The company has been moving toward selling more Medicare products and more small-group health plans, and decreasing the share of revenue it gets from the sale of individual and family health insurance policies.
The eHealth board said it’s still open to seeing new offers.
The board “intends to consider proposals it receives in the future that it believes could result in the creation of stockholder value,” the company said.
The company noted said it will hold an investor day in New York City on May 10.
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