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EHealth agrees board deal with hedge fund Hudson Executive

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By Svea Herbst-Bayliss

BOSTON, March 11 (Reuters) - Insurer eHealth Inc and Hudson Executive Capital said on Thursday that they had agreed to add two independent directors to the U.S. company's board a month after the hedge fund expressed concerns about its share price.

Hudson Executive, run by Douglas Braunstein, said last month that it had doubled its stake in eHealth to 5.8% and felt the stock price was undervalued.

The internet-based health insurer's stock price tumbled in late January around the time that it announced an investment from H.I.G. Capital. The shares climbed after Hudson Executive said it would engage with management.

John Hass, former chairman and chief executive at education technology software company Rosetta Stone will join the eHelath board as an independent director this week and the two sides will agree on another who will join in the coming weeks.

EHealth has been run by CEO Scott Flanders since 2016 and the stock price has risen nearly 300% during his tenure. The stock price closed at $55.92 on Wednesday.

"We are eager to benefit from the fresh perspectives and valuable insights of our new Board members as we continue building out our capabilities, executing our strategies and positioning our company to capture significant opportunities," Flanders said in a statement. (Reporting by Svea Herbst-Bayliss; Editing by Alexander Smith)