HIIQ - Why Health Insurance Innovations Stock Fell Today
Shares of Health Insurance Innovations (NASDAQ: HIIQ) fell by 12.4% Friday after the company provided an update on its business strategy and ongoing strategic review process. The cloud-based insurance platform company announced plans to boost investments in its Medicare business while attempting to maximize cash flows with its individual and family plan (IFP) business.
Why did investors react so negatively to the news? Probably because CEO Gavin Southwell stated that the shift to more heavily prioritize Medicare "may result in certain IFP carrier and distributor relationships and books of business being run-off or replaced."
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