Here is what you’ll find in this week’s newsletter!

1. Important links 🔗 - the best articles we found this week about the Medicare Market along with links to Jared’s recent LinkedIn posts.

2. Deep Dive 📚 - CY 2024 Medicare eBroker Financials Side-by-Side🍀

3. Sponsor Snapshot 🚀 - brought to you by PolicyBind

4. Compliance Chatter 📢 - Several new regulations to review!

It’s only a 5 minute read, but it will make you 10x smarter.

DEEP DIVE 📚

CY 2024 Medicare eBroker Financials Side-by-Side🍀

This week, we will explore calendar year (“CY”) 2024 financials for publicly traded Direct-to-Consumer distributors, also known as eBrokers.

The following companies’ 2024 financial results will be compared below, side-by-side.

• GoHealth (“$GOCO ( ▼ 0.57% ) ”)

• eHealth (“$EHTH ( ▼ 3.78% ) ”)

• SelectQuote (“$SLQT ( ▼ 2.66% ) ”)

Before comparing these 3 companies, it’s worth mentioning some notable changes in the eBroker industry recently.

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First, you’ll notice that e-Telequote is no longer included in this analysis.

That’s because GOCO acquired e-TeleQuote from Primerica as of 9/30/2024. For an analysis of what the combination looks like go here.

Second, Willis Towers Watson recently announced the sale of TRANZACT. The transaction is expected to close by year-end (more here).

Finally, earlier this year Prudential shut down Assurance IQ.

There is one other large eBroker worth mentioning that are part of publicly traded company, but does not report segment financials.

•  HealthMarkets - part of UnitedHealth Group

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Side-By-Side Results

To compare and contrast CY 2024 results we are looking at the Income Statement, a few key Balance Sheet items, LTV metrics, and Sales metrics.

Some key observations:

• Collectively generated over 2 million Medicare advantage sales

• Each have a commission receivable balance of $1 billion

• SLQT generated 43% of Revenue from their Healthcare segment (denoted as “Other Revenues”).

• Generated a collective profit margin of 3.8%.

YoY % Change

Now let’s observe the year-over-year (“YoY”) % changes.

Some key observations:

• Revenues up for all eBrokers

• Acquisition and Expense ratios down for all eBrokers

• Operating Profit (loss) improved across the board

Some key observations:

• MA sales increased significantly for GOCO and EHTH driven by very strong AEP results (Q4 2024)

• SLQT increase Healthcare Members 54% while Insurance sales growth was modest

• MA LTVs fairly flat overall

Final Thoughts

Medicare eBroker CY 2024 results were largely positive.

→ Increased Revenues

→ Decreased Expenses

→ Leading to significantly improved profitability.

Both EHTH and GOCO generated an increase in Q4 sales showing they had a big AEP from a sales perspective. This is while the overall MA market grew less than prior years. All of this points to more switching during AEP.

It will be interesting to see how eBrokers continue to navigate the ever change Medicare landscape as we go though 2025!

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That’s all for today, I hope it’s helpful!

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_{Source Data: Company 10-Qs and 10-Ks}

If you’re ready, here are some ways we can help you:

• Newsletter Sponsorship opportunities: Promote your product or services to leaders in the Medicare space. Let’s discuss. (link)

• Market Research: Reports that help you wrap your arms around the Senior focused insurance markets. (link)

• Consulting: We can help you develop new insurance products for the Medicare market, appraise your books of business, and keep you compliant. Let’s discuss. (link)