Executive Order Directs Expansion of Availability of Short Term Health Insurance and Access to Association Health Plans
October 12 2017 - 5:33PM
Independence Holding Company (NYSE:IHC) today commented on an
expected increase in sales as a result of President Trump’s
directive to extend duration of temporary health insurance
plans. IHC is also evaluating underwriting opportunities that
may develop from the expected expansion of Association Health
Plans, which was also directed by the Executive Order Promoting
Healthcare Choice and Competition Across the United States (the
“Order”).
The Order notes that short-term medical
insurance (STM) is “an appealing and affordable alternative to
government-run exchanges for many people without coverage available
to them through their workplaces.” The Order directs the
lifting of restrictions imposed by the previous administration,
which “took steps to restrict access to this market by reducing the
allowable coverage period from less than 12 months to less than 3
months and by preventing any extensions selected by the
policyholder beyond 3 months of total coverage.” As a leader
since 2005 in underwriting STM, sometimes also referred to as
short-term limited duration insurance, IHC expects to significantly
increase sales of not only STM, but also hospital indemnity, Fusion
(an STM policy packaged with first dollar hospital indemnity
coverage), and our other specialty health products. In
anticipation of increased sales of these products, IHC has made
substantial investments in improving its infrastructure, and we are
confident that we are prepared for significant volume increases.
The Departments of Treasury, Labor and Health and Human Services
have been directed by President Trump to propose regulations or
revise guidance within 60 days to expand the availability of STM,
and have been directed to “consider allowing such insurance to
cover longer periods and be renewed by the consumer.” IHC
selectively distributes these products through co-branded
arrangements with many of the largest health insurers and e-brokers
in the country, as well as through IHC’s own distribution channels,
including HealtheDeals, HealtheDeals Advisors, and AspiraAMas.
David Kettig, President and Chief Operating
Officer, commented “STM has for many years filled a vital purpose
for individuals with limited duration health insurance needs, and
was specifically permitted by the Affordable Care Act.
In our experience, STM is primarily purchased by people between
jobs, people in counties with only a single insurer offering
exchange plans, people with limited coverage networks and people
who missed the open enrollment period but still want insurance.
When STM is coupled with our hospital indemnity coverage,
individuals have very affordable first-dollar hospitalization
coverage coupled with limited duration catastrophic
insurance. We are seeing significant interest in our
specialty health products, and we expect the demand to intensify as
a result of the Order.”
Mr. Kettig continued, “IHC is also studying
President Trump’s directive to expand access to Association Health
Plans (AHPs). As noted in in the Order, ‘expanding access to
AHPs would provide more affordable health insurance options to many
Americans, including hourly wage earners, farmers, and the
employees of small businesses and entrepreneurs that fuel economic
growth.’ IHC has extensive experience in underwriting small
businesses and individuals. We are now actively evaluating
underwriting opportunities arising from the proposed expansion of
AHPs, which would provide even more options for small businesses,
and perhaps individuals, to purchase affordable health
insurance.”
About The IHC Group
Independence Holding Company (NYSE:IHC) is a
holding company that is principally engaged in underwriting,
administering and/or distributing group and individual specialty
benefit products, including disability, supplemental health, pet,
and group life insurance through its subsidiaries since 1980.
The IHC Group owns three insurance companies (Standard Security
Life Insurance Company of New York, Madison National Life Insurance
Company, Inc. and Independence American Insurance Company), and IHC
Specialty Benefits, Inc., a technology-driven insurance sales and
marketing company that creates value for insurance producers,
carriers and consumers (both individuals and small businesses)
through a suite of proprietary tools and products (including ACA
plans and small group medical stop-loss). All products are
placed with highly rated carriers.
Forward-looking Statements
Certain statements and information contained in
this release may be considered “forward-looking statements,” such
as statements relating to management's views with respect to future
events and financial performance. Such forward-looking
statements are subject to risks, uncertainties and other factors
that could cause actual results to differ materially from
historical experience or from future results expressed or implied
by such forward-looking statements. Potential risks and
uncertainties include, but are not limited to, economic conditions
in the markets in which IHC operates, new federal or state
governmental regulation, IHC’s ability to effectively operate,
integrate and leverage any past or future strategic acquisition,
and other factors which can be found in IHC’s other news releases
and filings with the Securities and Exchange Commission. IHC
expressly disclaims any duty to update its forward-looking
statements unless required by applicable law.
CONTACT: LOAN
NISSER(646)
509-2107www.ihcgroup.com
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