Health Insurance to benefit from short-term plan demand, says Cantor Fitzgerald
A recent study commissioned by the Association for Community Affiliated Health Plans suggests that implementation of the proposed regulatory changes to the short-term limited duration insurance market will result in a decrease of the number of individuals buying Affordable Care Act compliant plans, Cantor Fitzgerald analyst Steven Halper tells investors in a research note. He believes that in theory, many of these individuals are likely to purchase short-term plans, which would benefit Health Insurance Innovations (HIIQ). Further, the analyst continues to believe concerns regarding the potential impact from the multi-state examination are overblown. He sees Health Insurance reaching a settlement in the matter "sooner, rather than later." Halper views the stock as "extremely inexpensive" and keeps an Overweight rating on the name with a $60 price target.