HealthInsurance Innovations Inc.'s board has named Gavin Southwellpresident and Josef Denother COO.
Southwell's appointment is effective on the date on which hereceives an O-1 visa from the federal government.He will oversee the company's sales and compliance functions and specificoperational functions. Patrick McNamee, the company's current president, willcontinue to serve as CEO after Southwell takes up his post.
Southwell has been a consultant for Health InsuranceInnovations since April.Denother has served as vice president of operations since September 2015.
Additionally, Health Insurance Innovations said it hasreceived notice from the Indiana Department of Insurance that a multistateexamination is under way to review HCC Life Insurance Co.'s short-term medical plans,Affordable Care Act compliance, marketing, and rate and form filings for allproducts. The examination will include a review of Health Insurance Innovations'activities, given that it distributes HCC Life Insurance's products, and areview of whether the company's practices comply with Indiana insurance lawsand similar laws in other states taking part in the examination.
The U.S. Department of Health and Human Services of various proposed policy adjustments, including that short-term policies,such as the ones sold through Health Insurance Innovations, could coverindividuals for up to three months, rather than the six or 12 months offered bycurrent plans, and that the policies could not be renewed. McNamee at the timethat the company expected no material impacts from these changes.
Along with this multistate examination, several other statesare reviewing the sales practices and possible unlicensed sale of insurance bythird-party distributor call centers used by the company. The company is notaware of any examination into sales practices at its owned call centers, but itcannot be certain that no such investigation is taking place or will occur.
Health Insurance Innovations is aware of and managingadditional claims and inquiries that it does not believe are material at thistime, and it is too early to determine if any of these will have a materialimpact on the company, according to a filing.