Short-Sellers Take Aim at Health Insurance Innovations Again, Sending Shares Crashing 24% Today
Health Insurance Innovations (NASDAQ: HIIQ) shareholders have endured a horrible September that included short-sellers questioning the long-term viability of its business model and most recently, the quality of the company's third-party network of brokers. In the wake of these questions, investors knocked 24% off of the company's valuation in today's session alone.
Health Insurance Innovations markets short-term health insurance and hospital indemnity plans online and via third-party distributors. These plans offer consumers stop-gap coverage in a pinch. However, they aren't compliant with Obamacare health insurance requirements and it's uncertain if that fact is being appropriately discussed with consumers prior to their becoming customers.
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Source: Fool.com