The House Committee on Energy & Commerce announced yesterday that they have requested information and documents from 12 distributors of short-term, limited duration insurance plans. The E&C Committee believes the companies selling these products discriminate against individuals with pre-existing conditions and mislead consumers about the nature of the coverage they are purchasing, Cantor Fitzgerald analyst Steven Halper tells investors in a research note. He points out that shares of Health Insurance Innovations (HIIQ) and eHealth (EHTH) traded sharply lower on the news. Health Insurance Innovations focuses mostly on short-term plans, while eHealth's exposure is quite small, says Halper. The analyst, however, believes concerns regarding the request for information are overblown, as any proposed legislative action would likely not pass the Senate and would almost certainly be vetoed by President Trump. Further, he reminds investors that Health Insurance Innovations recently closed out a 43-state review with virtually no impact on its businesses. He reiterates Overweight ratings on both stocks.

Still expects 2024 GAAP net income ($40M)-($20M) and adjusted EBITDA ($5M)-$20M.