I think the market is underestimating their ability to transition from major medical to supplemental health insurance. I understand the concern, not seeing a major carrier in the line up for supplemental. But looking at the history of Access Plans USA, you clearly see a bottoming over the last few quarters in the insurance marketing division. The other two segments have seen continued growth Q over Q the last 5+ years.
The other big question some might have had is whether CVS will continue the Health Savings Pass . The yearly rate will become $15 per year compared to $10, so CVS seems to be fully willing to keep that program going nationwide and think a small price change will keep it viable.
Rent A Center is not going anywhere anytime soon. APNC's ability to get customers to sign up for the RAC Benfits Plus program is increasing. If they are ever able to get a second offering in these stores, that could translate into a surprising increase in revenue. If after every sale at RAC, APNC is able to pitch a company owned and run supplemental insurance offering, you will see the Access Plans USA acquisition come full cirle. That was the intention from day one with the merger of ALHC and AUSA. That non ability to get a supplemental offering to customers at RAC could also be the reason the market refuses to give them a fair valuation.
