Health In Tech, Inc. (NASDAQ: HIT)

Health in Tech (“HIT”) is an insurance technology platform company that offers a marketplace to improve processes in the healthcare industry through vertical integration, process simplification, and automation. The company streamlines underwriting, sales, and service processes for insurance companies, licensed brokers, and third-party administrators by providing a digital platform for stop-loss policy options and self-funded benefits plans. HIT leverages AI-backed technology to deliver bindable insurance quotes within approximately two minutes, reducing friction and complexity in the health insurance marketplace for small businesses.

HIT generates revenue primarily through fees collected from small business employers and insurance carriers when licensed brokers or third-party administrators successfully sell stop-loss insurance policies for self-funded benefits plans via the company’s platform. Revenue is derived from service fees paid by employers for program administration, underwriting fees retained by the MGU subsidiary on behalf of carriers, and optional add-on fees for the HI Card platform. The company earns income when transactions are completed on its marketplace, with fees distributed to subsidiaries based on the sold case breakdown of services utilized by each client.

The company operates through the following segments:

• Stone Mountain Risk, LLC (“SMR”) specializes in designing customized self-funded health plans for small businesses, including selecting provider networks, managing vendors, and setting up benefits structures on the marketplace. SMR collaborates with third-party administrators and brokers to tailor health plans to employer needs, offering reference-based pricing, group insurance captives, community health plans, and association health programs.

• International Captive Exchange, LLC (“ICE”) functions as a managing general underwriter that provides underwriting and administrative services for stop-loss carriers. ICE uses its eDIYBS platform to medically underwrite policies, manage claims, facilitate reinsurance reporting, and lower risk pools for small business groups by enabling self-funding of claims. The platform generates bindable quotes in approximately two minutes using AI-backed technology and third-party data feeds.

• HI Card LLC’s HI Card platform offers a standardized transaction platform for managing medical records and claims through a single login, aggregating health-related information for patients, providers, brokers, and third-party administrators. The platform provides 24/7 access to medical records, insurance plan details, provider directories, and claims status, and includes access to the HI Performance Network, which connects users to Medicare-based reimbursement pricing across 10,235 hospitals and 1,593,202 providers in 50 states.

HIT operates in the competitive insurance technology industry, where it differentiates itself through AI-driven automation that delivers bindable quotes in under two minutes, significantly faster than competitors that require days or weeks for manual underwriting. The company’s competitive advantage lies in its proprietary eDIYBS platform, which uses machine learning and third-party data to generate risk scores and premiums within carrier guidelines, and its integrated marketplace model that combines plan design, underwriting, and administrative services. While facing competition from larger technology and insurance firms such as ServiceNow, Phreesia, and Everquote, HIT focuses on underserved small businesses with workforces of 5 to 150 employees, offering cost savings and transparency not typically available through traditional carriers.

HIT serves small employers, licensed brokers, third-party administrators, and insurance carriers. The company’s customers are primarily small businesses with 5 to 150 employees seeking affordable, customized health insurance solutions. As of December 31, 2023, HIT had clients in 42 states, with 192 brokers, 17 third-party administrators, and 118 additional third-party agencies actively using its platform to sell stop-loss insurance policies to 1,002 business clients covering 21,213 employees.