What's Causing Health Insurance Innovations to Drop 12% Today?

What's Causing Health Insurance Innovations to Drop 12% Today?

After the Trump administration said it will cut spending on ads for the Affordable Care Act, or Obamacare, by 90% and reduce payments to third parties that help individuals select health insurance plans, shares of Health Insurance Innovations (NASDAQ: HIIQ) had lost 11.7% of their value by 1:30 p.m. EDT.

Health Insurance Innovations sells short-term health insurance and hospital indemnity plans online and via third-party distributors, and while its plans aren't directly tied to Obamacare, changes in marketing plans could lead to lower demand for health insurance overall.

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Source: Fool.com