EHealth becomes the latest Obamacare beneficiary
The company has received federal approval to begin selling health plans under the Affordable Care Act.
EHealth (EHTH) is the parent company of eHealthInsurance, a large private health insurance exchange where people can compare products from leading insurers and buy coverage online.
The company offers thousands of individual, family and small business health plans underwritten by more than 200 insurance companies through their websites and through their network of marketing partners.
EHealth is licensed to sell health insurance in all 50 states and the District of Columbia. Its e-commerce technology also enables it to deliver consumer applications electronically to health insurance carriers.
This simplifies the complex and traditionally paper-intensive health insurance sales and purchasing process.
In addition, through its eHealthTechnology solution, eHealth provides a suite of hosted e-commerce solutions that enable health plan providers and resellers to market and distribute health insurance products online.
The company also makes available powerful online tools to help seniors navigate Medicare health insurance options, choose the right plan and enroll in select plans online through its wholly-owned subsidiary, PlanPrescriber, and through its Medicare website.
On Aug. 16, eHealth announced that it had received approval from the federal government to begin selling health plans offered under the Affordable Care Act.
This approval will allow eHealth to compete for the millions of Americans receiving federal tax subsidies to buy health coverage effective Jan. 1.
In the company’s latest reported second quarter, sales increased approximately 12% to $39.8 million from $35.5 million in the second quarter of last year.
EHealth reported earnings per share of 12 cents in the latest reported second quarter, up from 11 cents a year earlier.
We expect an acceleration in growth in the coming quarters in both revenues and earnings as the company benefits from several initiatives including the recent approval to participate through the Affordable Care Act.
Disclosure: Clients of Oberweis Asset Management own approximately 35,000 shares.
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The offering could become the second-biggest this year if underwriters exercise an option to buy more shares.
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