The IHC Group Announces Partnership with eHealth, Inc. to Bring Health Insurance Shoppers Affordable Alternatives for the A...
24 October 2017 - 7:34AM
Independence Holding Company (NYSE:IHC) announced today that it has
partnered with eHealth, Inc. (NASDAQ:EHTH) to offer medical
insurance packages to shoppers unable to afford health insurance
plans that meet all the benefit requirements with the Affordable
Care Act (the ACA, or Obamacare). eHealth operates eHealth.com, a
leading private online health insurance marketplace.
The IHC Group worked with eHealth to develop
these medical insurance packages to provide an affordable coverage
alternative for eHealth shoppers who cannot afford
Obamacare-compliant major medical health insurance coverage. Based
on recent studies described below, the number of consumers who
cannot afford such coverage will increase. These products are
available through eHealth in 37 states and the District of Columbia
and provide a single point of service when policy holders need to
use their benefits.
The new packages are expected to be very popular
commencing November 1, 2017, when the 2018 open enrollment period
is scheduled to begin. The IHC Group has provided eHealth with an
exclusive distribution relationship for select packages developed
through this partnership.
“We’re excited to partner with eHealth on these
innovative medical insurance packages,” said David Kettig,
President of IHC. “A lot of today’s health insurance shoppers
simply can’t afford major medical insurance but still want
protection against unforeseen medical costs. We are one of the
largest and most experienced underwriters of affordable health
plans in the country, and the packages we’ve developed in
conjunction with eHealth provide that protection at a reasonable
cost.”
Offerings may differ by state but these medical
insurance packages include varying combinations of both insurance
and non-insurance products, such as short-term medical insurance,
supplemental (GAP) insurance, fixed-indemnity insurance,
telemedicine benefits, prescription drug discount benefits, and
medical advocacy services.
Medical insurance packages do not offer coverage
for pre-existing medical conditions and it is possible, with some
packages, to be declined coverage based on the presence of
pre-existing medical conditions. These products do not provide the
same benefits as major medical plans that meet the coverage
requirements of the Affordable Care Act. In particular, packages do
not provide the full set of minimum essential benefits required by
the Affordable Care Act. Persons going without Obamacare-compliant
coverage in 2018 may be subject to a tax penalty depending on their
individual circumstances.
Obamacare’s Individual Mandate Exemption
& the Affordability Gap
A recent analysis1 found that 43 percent of
people who buy health insurance in the individual market (7.5
million) don’t receive government assistance (advance premium tax
credits, commonly referred to as Obamacare subsidies) because they
earn more than 400 percent of the federal poverty level.
The ACA defines health insurance as
“unaffordable” when the lowest-priced plan available costs more
than 8.06 percent of an individual or family’s yearly income
(MAGI).
With premiums expected to rise by more than 20
percent in some markets, eHealth recently published a report
examining health insurance costs for families that make too much to
receive ACA premium subsidies in 50 U.S. cities and found that a
projected 10 percent increase in 2018 would make their health
insurance unaffordable in 47 of those cities. eHealth also analyzed
ACA health insurance premiums for individuals that make too much to
receive ACA premium subsidies in 25 U.S. cities and found that by
age 45 health insurance would be unaffordable in the majority of
those cities if premiums rise 10 percent in 2018.
Notes:
1As reported on NPR from insurance industry
consultant Robert Laszewski.
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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