Health Insurance Innovations Drops 20% After Downgrade

Health Insurance Innovations Inc. dropped almost 20% after a Raymond James downgrade Thursday. The company's stock has dropped nearly 24% this week after the Department of Health and Human Services announced Wednesday morning a proposal to cut down on short-term health insurance plans. Health Insurance Innovations sells 12-month short-term medical insurance plans as an alternative to traditional plans. The new rule, which would go into effect in 2017, limit short-term plans to three months or less, citing healthy individuals' use of these plans instead of entering the regular insurance market. Raymond James analyst Steven Schwartz downgraded the company from strong buy to market perform, citing regulatory uncertainty. "We expect significant insurance industry push back and believe that an industry legal response will be likely if the proposal is adopted in its current form," Schwartz said.