Shares of a company selling short-term health insurance plans took a hit Wednesday after Congress members announced they were looking into the practice.
Shares of one of these companies — Health Insurance Innovations — dropped sharply after the news, first reported by Politico. The Tampa, Florida-based company, which trades on the Nasdaq, offers life, critical illness, dental and other insurance products. Shares closed 17 percent lower Wednesday, but are still up more than 15 percent this year.
UnitedHealth Group and Anthem were also among the 12 letter recipients and closed the day slightly higher.
Health care has been divisive issue for both sides of the aisle — especially since the introduction of the Affordable Care Act in 2010. Some Republicans have since moved to repeal the Obama administration’s signature healthcare law, while several Democratic presidential candidates are embracing an even more expansive “Medicare-for-all” insurance plan to cover every American.
Raymond James analyst Gregory Peters, who has an “outperform” rating on Health Insurance Innovations, said any investigation by the House Energy and Commerce Committee Democrats “should not come as a surprise.”
“We view the sell-off in the stock as an irrational overreaction with zero fundamental basis,” Peters wrote in a note to clients Thursday. “The only policy threat to short term health plans is if a Democrat wins the White House in 2021.”
Here are the companies receiving letters from Congress members:
Agile Health Insurance
Arkansas Blue Cross Blue Shield
Blue Cross Idaho
Cambia Health Solutions
Health Insurance Innovations
Healthcare Solutions Team
Independence Holding Company
National General Accident and Health