The NIB Holdings Limited (ASX: NHF) share price is in reverse today following a morbid day on the ASX.
Shares in the private health insurer are down 1.11% to $7.11.
In comparison, the S&P/ASX 200 Index (ASX: XJO) is 0.72% lower at around 7,020 points.
Adding to its misfortune, the NIB share price is trailing behind its rival, Medibank Private Ltd (ASX: MPL). The latter's shares are down just 0.43% to $3.465 apiece.
Let's take a look at what could be causing this discrepancy between shares in the two companies.
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NIB backtracks as Medibank makes policy changes
The NIB share price appears to be suffering at the hands of a broader fall across the ASX.
However, its competitor, Medibank, is largely shrugging off the sell-off following news that it has extended its policy coverage.
According to The Australian, Medibank and its subsidiary ahm are entending the age of adult dependants on their parents' policy from 25 to 31.
As of next Thursday, young adults up to the age of 31 will be able make claims on their parents' extras and hospital cover.
The decision to adjust the policy is to help alleviate financial stress as the cost of living has risen sharply.
Medibank is hoping to retain younger Aussies as recent data has shown that this demographic is steadily dropping off private health cover.
When the young adults do turn 31, the lifetime health cover loading (LHC) will kick in. This is where an annual 2% loading penalty is applied to private hospital premiums for every year you do not have cover.
It is worth noting that the LHC only relates to hospital insurance policies.
Whether or not NIB will quickly follow suit remains to be seen.
The company covers adult children up to the age of 25 if they are full-time students or on extended family policies at an extra cost.
NIB share price summary
In 2022, the NIB share price has moved in circles on the back of inflationary pressure and volatility on the ASX.
The company's shares are relatively flat for the period, but down 7% when looking at the past 12 months.
Based on today's price, NIB commands a market capitalisation of roughly $3.30 billion.
