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eHealth, Inc. (EHTH) operates as a leading private online health insurance marketplace. The company provides consumer engagement, education, and health insurance enrollment solutions through its technology and service platform. EHTH sells a broad range of insurance products, including Medicare-related plans, individual and family plans, and small business health insurance plans.
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Medicare Segment - Offers Medicare-related health insurance plans, including Medicare Advantage, Medicare Supplement, and Medicare Part D prescription drug plans. Also includes ancillary products like dental and vision plans, fee-based BPO services, post-enrollment services, and advertising programs.
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Employer and Individual (E&I) Segment - Provides individual, family, and small business health insurance plans, both qualified and non-qualified. Includes ancillary products such as dental, vision, and short-term insurance, along with online sponsorship and advertising programs, technology licensing, and lead referral activities.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Francis S. Soistman ExecutiveBoard | Chief Executive Officer | Francis S. Soistman is the Chief Executive Officer of eHealth, Inc. since November 2021 and serves on the Board of Directors from the same date. He brings nearly four decades of experience in healthcare leadership, having held roles such as Founder and President of Healthcare Management and Transformation Advisory Services LLC and Executive Vice President at CVS Health/Aetna. | View Report → | |
Gavin G. Galimi Executive | Senior Vice President, General Counsel, and Corporate Secretary | Co-Founder at Stratagem Investments | Gavin G. Galimi serves as the Senior Vice President, General Counsel, and Corporate Secretary at EHTH since June 27, 2022. He has extensive experience in legal and corporate governance roles, including previous positions at UnitedHealth Group and active involvement as Co-Founder at Stratagem Investments. | |
John J. Stelben Executive | Senior Vice President and Chief Financial Officer (CFO) | John J. Stelben has served as CFO of eHealth, Inc. since November 14, 2022. He brings over 25 years of financial leadership experience from previous roles at Aetna and Coventry Health Care, Inc.. | ||
Michelle M. Barbeau Executive | Chief Revenue Officer | Michelle M. Barbeau has been the Chief Revenue Officer at EHTH since January 1, 2024, after serving as Chief Marketing Officer from September 2022 to December 2023. |
- Given the observed commission suppression by carriers during this AEP and its impact on enrollment profitability, how does management plan to offset this risk in future cycles while maintaining attractive margins?
- With a forecast for a Q1 adjusted EBITDA loss despite record enrollment growth in 2024, how do you justify the upfront cash investment strategy relative to the long-term profitability of the Medicare business?
- Considering that the Amplify platform currently contributes less than 10% of total revenue, what specific initiatives are being implemented to improve its margins, and what is the expected timeline for these improvements?
- In light of the regulatory changes affecting D-SNPs and the anticipated shift in marketing spend between Q2/Q3 and Q4, how will management adjust its enrollment strategy to maintain strong conversion rates?
- With ongoing uncertainty in the regulatory environment and potential adjustments in Medicare Advantage rates under the new administration, what steps will management take to ensure sustained growth and mitigate the risks of a volatile market?
| Customer | Relationship | Segment | Details |
|---|---|---|---|
Humana | Health insurance carrier paying commissions for plan sales | Medicare | 24% of total revenue in 2024; 27% in 2023 |
UnitedHealthcare | Health insurance carrier paying commissions for plan sales | Medicare | 22% of total revenue in 2024; 23% in 2023 |
Aetna | Health insurance carrier paying commissions for plan sales | Medicare | 18% of total revenue in 2024; 15% in 2023 |
Recent press releases and 8-K filings for EHTH.
- Robust Financial Performance: Q1 revenue reached $113.1 million with a 22% YoY growth, turning GAAP net income positive at $2.0 million (vs. a loss of $17.0 million in Q1 2024) and adjusted EBITDA improved to $12.5 million, reversing last year’s losses .
- Medicare Segment Strength: Total Medicare submissions increased 22% (with the agency model up 26%) and Medicare Advantage submissions rose 25%, accompanied by a 10% decline in acquisition costs; additionally, tail revenue guidance was raised to $11–$20 million with cumulative tail revenue of $234 million .
- Guidance Update: The company reiterated full year 2025 revenue guidance of $510.0 million to $550.0 million and updated key metrics including positive net adjustment revenue .
- Healthy Liquidity & Strategic Initiatives: eHealth ended the quarter with $155.6 million in cash, cash equivalents, and short-term marketable securities while advancing initiatives like AI integration and the Amplify program to enhance enrollment operations .
- Record Q4 Financial Performance: Revenue reached $315.2 million, GAAP net income hit $97.5 million, and adjusted EBITDA grew 74% to $121.3 million at a 38% margin, marking a record quarter
- Robust Medicare Performance: Medicare Advantage submissions surged 42% YoY with a 16% expansion in unit margins; Medicare revenue increased 31% to $305.8 million, complemented by a 23% reduction in acquisition cost per approved member and commissions receivable at $1.0 billion
- Strategic Investments for Growth: Initiatives in digital tools, AI projects, and expanding carrier partnerships (Amplify) are set to drive long-term competitive advantage and diversified revenue streams