eHealth's seventh annual Medicare Index Report tracks plan cost and selection trends among 190,000+ beneficiaries 84% of Medicare Advantage enrollees choose plans with $0 premiums; average deductible drops below $100 for the first time AUSTIN, Texas, March 7, 2024 /PRNewswire/ -- For deeper insights into Medicare insurance trends, look beyond what's merely available in the market for beneficiaries to choose from. Look instead at what they actually select for themselves. eHealth's seventh-annual Medicare Ind ...

eHealth, Inc. (EHTH) reported a fourth-quarter 2023 adjusted earnings of $1.61 per share, missing the Zacks Consensus Estimate by 17%. The bottom line, however, jumped from the prior-year quarter’s earnings of $1.14 per share.The top line increased 26% year over year to $247.7 million. The figure beat the consensus mark by 1.3%.The lower-than-expected earnings were caused by higher operating costs and expenses and weaker performance in Employer and Individual businesses. The negatives were partially offset ...

Part I [Business](index=7&type=section&id=Item%201.%20Business) eHealth operates a private health insurance marketplace, with Medicare driving 90% of 2023 revenue, focusing on enrollment growth and retention - eHealth operates a private health insurance marketplace through an omnichannel platform, offering products from over **180 carriers**, divided into Medicare and Employer and Individual (E&I) segments[21](index=21&type=chunk)[22](index=22&type=chunk)[23](index=23&type=chunk) - The Medicare segment is the primary business, accounting for about **90% of total revenue in 2023**, with most revenue from commission payments[23](index=23&type=chunk) - Growth strategies focus on deliberate enrollment growth, enhancing omnichannel marketing, improving enrollment quality and member retention, and diversifying revenue streams including the E&I segment[41](index=41&type=chunk)[42](index=42&type=chunk)[48](index=48&type=chunk) - As of December 31, 2023, the company had **1,903 full-time employees**, with **1,322 in customer care** and **249 in its China subsidiary**[92](index=92&type=chunk) [Risk Factors](index=25&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from intense competition, reliance on key carriers, complex CMS regulations, financial constraints, and operational challenges - The company faces intense competition from government-run health insurance exchanges, other insurance agents and brokers, and the carriers themselves, which could increase marketing costs and reduce market share[107](index=107&type=chunk)[108](index=108&type=chunk)[110](index=110&type=chunk) - A significant portion of revenue is concentrated with a few health insurance carriers, with Humana, UnitedHealthcare, and Aetna accounting for **27%**, **23%**, and **15% of total revenue** respectively in 2023[114](index=114&type=chunk) - The marketing and sale of Medicare plans are subject to complex and frequently changing laws and regulations from CMS, potentially limiting broker compensation and restricting marketing activities[152](index=152&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk) - The company's debt and preferred stock agreements contain restrictive covenants, including minimum liquidity and asset coverage ratios, the latter of which has not been met since September 30, 2023, granting H.I.G. additional rights[186](index=186&type=chunk)[188](index=188&type=chunk) - Commission revenue recognition relies on complex estimates of constrained lifetime value (LTV) based on assumptions about member conversion rates, plan duration, and commission amounts, which can significantly impact reported revenue[173](index=173&type=chunk)[175](index=175&type=chunk) [Unresolved Staff Comments](index=55&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the Securities and Exchange Commission - There are no unresolved staff comments[234](index=234&type=chunk) [Cybersecurity](index=55&type=section&id=Item%201C.%20Cybersecurity) eHealth maintains a comprehensive cybersecurity risk management program, overseen by the Audit Committee, with no material incidents reported to date - The company has a formal cybersecurity risk management program integrated into its overall enterprise risk management, overseen by the Board's Audit Committee[235](index=235&type=chunk)[243](index=243&type=chunk) - The cybersecurity strategy includes regular risk assessments, employee and contractor security awareness training, phishing simulations, and periodic penetration audits to identify vulnerabilities[236](index=236&type=chunk)[238](index=238&type=chunk)[239](index=239&type=chunk) - A formal Incident Response Plan is in place, and the company has engaged a cyber crisis response platform and conducted mock cyber-attack exercises to prepare senior leadership[240](index=240&type=chunk)[241](index=241&type=chunk) - As of the date of the report, the company has not experienced any cybersecurity incidents that were determined to be material[242](index=242&type=chunk) [Properties](index=57&type=section&id=Item%202.%20Properties) The company's corporate headquarters are in Austin, Texas, with a remote-first U.S. model and a significant leased office in Xiamen, China for operations - Corporate headquarters are located in a **26,878 sq. ft. leased space** in Austin, Texas[247](index=247&type=chunk) - In 2022, the company adopted a remote-first workplace model in the United States, leading to the closure of some office spaces[247](index=247&type=chunk) - The company leases **53,758 sq. ft. of office space** in Xiamen, China, which supports technology, customer care, marketing, and administrative operations[247](index=247&type=chunk) [Legal Proceedings](index=57&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various legal proceedings and regulatory inquiries, with material details provided in Note 8 of the financial statements - The company is subject to inquiries from state and federal regulators and may be involved in litigation in the ordinary course of business[249](index=249&type=chunk) - Details on material legal proceedings are provided in Note 8 – Commitments and Contingencies in the financial statements section of the report[249](index=249&type=chunk) [Mine Safety Disclosures](index=57&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[250](index=250&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=58&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) eHealth's common stock trades on Nasdaq under EHTH, has never paid dividends, and its performance is compared against market indexes in the report - The company's common stock is traded on the Nasdaq Global Market under the symbol **EHTH**[251](index=251&type=chunk) - eHealth has never declared or paid cash dividends on its common stock and does not expect to in the foreseeable future[252](index=252&type=chunk) Stock Performance Graph | | 12/31/2018 | 12/31/2019 | 12/31/2020 | 12/31/2021 | 12/31/2022 | 12/31/2023 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **eHealth, Inc.** | $100.00 | $250.08 | $183.78 | $66.37 | $12.60 | $22.70 | | **Nasdaq Composite** | $100.00 | $136.69 | $198.10 | $242.03 | $163.28 | $236.17 | | **RDG Internet Composite** | $100.00 | $141.93 | $194.91 | $190.78 | $115.68 | $168.80 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=60&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2023, eHealth's transformation led to a 12% revenue increase to $452.9 million, a reduced net loss of $28.2 million, and improved Medicare Advantage LTV, with strong liquidity - The company is executing a multi-year transformation plan focused on enrollment quality, member experience, and cost savings, resulting in over **$110 million in cost savings in 2022** and a return to Medicare Advantage enrollment growth in Q4 2023[261](index=261&type=chunk)[262](index=262&type=chunk)[263](index=263&type=chunk) Approved Members by Product | Product | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | **Total Medicare** | 337,476 | 361,612 | 501,070 | | Individual and Family | 27,318 | 33,271 | 42,711 | | Ancillary | 56,789 | 72,004 | 97,694 | | Small Business | 7,613 | 9,722 | 11,432 | | **Total Approved Members** | **429,196** | **476,609** | **652,907** | Estimated Constrained LTV of Commissions Per Approved Member | Product | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | Medicare Advantage | $1,049 | $975 | $979 | | Medicare Supplement | $891 | $935 | $993 | | Medicare Part D | $220 | $194 | $203 | Financial Performance Summary (in thousands) | Metric | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | **Total Revenue** | $452,871 | $405,356 | $538,199 | | **Loss from Operations** | $(29,074) | $(102,713) | $(125,645) | | **Net Loss** | $(28,214) | $(88,722) | $(104,375) | - Commission revenue increased **12% in 2023**, largely due to **$48.1 million in positive net adjustment revenue** from prior period enrollments, reflecting favorable retention dynamics and commission rates[287](index=287&type=chunk)[263](index=263&type=chunk) - As of December 31, 2023, the company had **$121.7 million in cash, cash equivalents, and short-term marketable securities** and believes it has sufficient liquidity to fund operations for at least the next 12 months[338](index=338&type=chunk)[346](index=346&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=85&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are credit risk, concentrated in commissions receivable from major carriers, and foreign currency exchange risk from its China subsidiary's operations - The company's main financial instruments exposed to credit risk are cash, cash equivalents, marketable securities, and contract assets – commissions receivable[385](index=385&type=chunk) - As of December 31, 2023, net contract assets – commissions receivable totaled **$918.2 million**, with the company considering the risk of non-performance by its counterparty carriers to be remote[386](index=386&type=chunk) - The company has exposure to foreign currency exchange risk from the operating expenses of its subsidiary in China, which are denominated in Chinese Yuan Renminbi, though this risk has not had a material impact to date[389](index=389&type=chunk) [Financial Statements and Supplementary Data](index=88&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for 2021-2023, with Ernst & Young LLP providing an unqualified opinion on financial statements and internal control - The independent auditor, Ernst & Young LLP, issued an unqualified opinion on the consolidated financial statements and on the company's internal control over financial reporting as of December 31, 2023[395](index=395&type=chunk)[396](index=396&type=chunk) Consolidated Balance Sheet Highlights (in thousands) | | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$1,113,345** | **$1,112,611** | | Cash and cash equivalents | $115,722 | $144,401 | | Contract assets – commissions receivable (Total) | $918,177 | $884,304 | | **Total Liabilities** | **$209,261** | **$198,372** | | Long-term debt | $67,754 | $66,129 | | **Total Stockholders' Equity** | **$606,031** | **$650,955** | Consolidated Statements of Comprehensive Loss Highlights (in thousands) | | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | **Total Revenue** | $452,871 | $405,356 | $538,199 | | **Total operating costs and expenses** | $481,945 | $508,069 | $663,844 | | **Net Loss** | $(28,214) | $(88,722) | $(104,375) | | **Loss per share (basic and diluted)** | $(2.37) | $(4.36) | $(4.59) | - The critical audit matter identified by the auditor relates to the estimation of the constrained lifetime value (LTV) of commission revenue, due to the complexity of the models and the subjectivity of the assumptions involved[401](index=401&type=chunk)[402](index=402&type=chunk) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=131&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[605](index=605&type=chunk) [Controls and Procedures](index=131&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2023, affirmed by Ernst & Young LLP - Management concluded that the company's disclosure controls and procedures were effective as of December 31, 2023[607](index=607&type=chunk) - Management concluded that the company's internal control over financial reporting was effective as of December 31, 2023, based on the COSO 2013 framework[609](index=609&type=chunk) - The independent auditor, Ernst & Young LLP, issued an unqualified opinion on the effectiveness of the company's internal control over financial reporting as of December 31, 2023[616](index=616&type=chunk) - No changes in internal control over financial reporting occurred during the fourth quarter of 2023 that have materially affected, or are reasonably likely to materially affect, internal controls[610](index=610&type=chunk) [Other Information](index=135&type=section&id=Item%209B.%20Other%20Information) No director or officer adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the fourth quarter of 2023 - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during the fiscal quarter ended December 31, 2023[624](index=624&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=135&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information for this item is incorporated by reference from the forthcoming Definitive Proxy Statement - Information is incorporated by reference from the forthcoming Definitive Proxy Statement[626](index=626&type=chunk) [Executive Compensation](index=135&type=section&id=Item%2011.%20Executive%20Compensation) Information for this item is incorporated by reference from the forthcoming Definitive Proxy Statement - Information is incorporated by reference from the forthcoming Definitive Proxy Statement[627](index=627&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=135&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information for this item is incorporated by reference from the forthcoming Definitive Proxy Statement - Information is incorporated by reference from the forthcoming Definitive Proxy Statement[628](index=628&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=135&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information for this item is incorporated by reference from the forthcoming Definitive Proxy Statement - Information is incorporated by reference from the forthcoming Definitive Proxy Statement[629](index=629&type=chunk) [Principal Accountant Fees and Services](index=135&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information for this item is incorporated by reference from the forthcoming Definitive Proxy Statement - Information is incorporated by reference from the forthcoming Definitive Proxy Statement[630](index=630&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=136&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists documents filed as part of the Form 10-K, confirming consolidated financial statements are in Item 8 and providing an index of exhibits - The Consolidated Financial Statements are included in Item 8 of the report[631](index=631&type=chunk) - All financial statement schedules have been omitted because they are not applicable or the required information is included elsewhere[632](index=632&type=chunk) - An index of exhibits filed with or incorporated by reference into the report is provided[633](index=633&type=chunk) [Form 10-K Summary](index=136&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has not provided a summary for Form 10-K - None[634](index=634&type=chunk)

Safe Harbor Statement This presentation includes both GAAP and non-GAAP financial measures. The presentation of non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures included in this presentation to the most directly comparable GAAP financial measures is available in the Appendix to this presentation. Management uses both GAAP and non-GAAP information in evaluating and ...

Financial Data and Key Metrics Changes - Fourth quarter GAAP net income was $52.2 million, compared to $20.7 million in Q4 a year ago, reflecting significant improvement [21] - Fourth quarter adjusted EBITDA was $69.6 million, an increase of 41% from $49.5 million in Q4 of 2022 [21] - Total revenue for the full year 2023 was $452.9 million, a 12% increase year-over-year [21] - Fourth quarter operating cash flow was negative $33.4 million versus a negative $18.6 million in Q4 of 2022, reflecting investment in AEP-related enrollment growth [22] Business Line Data and Key Metrics Changes - Fourth quarter Medicare Advantage approved members were approximately 160,000, an increase of 22% year-over-year [16] - Total Medicare approved members grew 16% year-over-year to approximately 187,000, reflecting growth in Medicare Advantage and Medicare Supplement enrollments [16] - Fourth quarter Medicare segment profit was $80.3 million, compared to $53.2 million in Q4 of 2022, marking a $27.1 million year-over-year increase [20] Market Data and Key Metrics Changes - The individual MA market grew 2.3% sequentially and 9.4% year-over-year as of January 2024, indicating a slight acceleration from the previous year [73] - The average beneficiary had access to 43 Medicare Advantage plans, the largest number of options ever [4] Company Strategy and Development Direction - The company plans to advance its local market-focused omnichannel enrollment engine to drive higher conversions and greater LTV to CAC ratio in its Medicare Choice model [11] - A focus on building a distinctive consumer brand is seen as a major competitive advantage in a sector lacking strong brand awareness [11] - The company aims to diversify its marketing channel mix and scale its direct branded channels and best-performing strategic partnerships [11] Management's Comments on Operating Environment and Future Outlook - Management noted that several national carriers are emphasizing profit over enrollment growth, which may lead to market exits and increased shopping opportunities for eHealth [5] - The company expects to grow in 2024 by gaining market share in a more rational marketplace [74] - Management expressed confidence in the organization's ability to navigate the dynamic industry and seize new opportunities throughout the year [102] Other Important Information - The company recognized total tail revenue of $48.1 million in 2023, including $15.6 million in the fourth quarter, compared to $6.4 million in fiscal year 2022 [18] - The ending position of combined short- and long-term contract asset receivable was $918 million, up from $884 million a year ago [91] Q&A Session Summary Question: Response to open letter to CMS - Management did not receive a response from CMS but noted that carriers largely supported the letter due to shared challenges [94] Question: Anticipated changes in agent headcount - The company expects to grow agent resources for the Amplify business while keeping agency side headcount relatively flat, with a larger proportion of tenured advisors expected to improve conversion performance [111] Question: Cost expectations for 2024 - Year-over-year absolute increase in CC&E is expected to be less than in 2023, with growth predominantly in the Amplify business [113]

EHealth (EHTH) came out with quarterly earnings of $1.61 per share, missing the Zacks Consensus Estimate of $1.94 per share. This compares to earnings of $1.14 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -17.01%. A quarter ago, it was expected that this provider of internet-based heath insurance agency services would post a loss of $0.70 per share when it actually produced a loss of $1.54, delivering a surprise of -120%.Ov ...

eHealth, Inc. (EHTH) is set to report its fourth-quarter 2023 results on Feb 27, before the opening bell. It is expected to have witnessed increased Medicare Advantage members and commission revenues in the December quarter.Earnings Surprise HistoryeHealth’s earnings beat the consensus estimate in one of the prior four quarters and missed on the other three occasions, with the average surprise being negative 1.1%. This is depicted in the graph below:In the last reported quarter, the leading online health in ...

AUSTIN, Texas, Feb. 26, 2024 /PRNewswire/ -- Today eHealth, Inc. (Nasdaq: EHTH) (eHealth.com), a leading online private health insurance marketplace, announces a new pilot program – "Advisor in the Room" – that will transform a traditional phone call into a dynamic, visual experience. This innovative technology will empower eHealth's benefit advisors, who are licensed insurance agents, to instantly appear on a customer's computer or phone screen upon request, fostering a deeper connection and personalized s ...

AUSTIN, Texas, Feb. 15, 2024 /PRNewswire/ -- eHealth, Inc. (Nasdaq: EHTH), a leading private online health insurance marketplace, today announced that the company plans to release fourth quarter and fiscal year 2023 financial results on February 27, 2024. The company will hold an earnings conference call beginning at 8:30 a.m. Eastern Time on February 27th to discuss these results. The call will be hosted by eHealth's chief executive officer, Fran Soistman and eHealth's chief financial officer, John Stelben ...

eHealth (EHTH) shares ended the last trading session 20.8% higher at $6.74. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 37.2% loss over the past four weeks.EHTH recently announce its solid fourth quarter and full year 2023 preliminary results. Medicare Advantage approved members as well as Total Medicare approved members increased year over year in the fourth quarter of 2023. GAAP net income for the fourth quar ...