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 📚 - eBroker Financials Side-By-Side - Q1 2025

3. Sponsor Snapshot 🚀 - brought to you by MMI+

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

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

DEEP DIVE 📚

eBroker Financials Side-By-Side - Q1 2025

This week, we will explore Q1 2025 financials for publicly traded Direct-to-Consumer distributors, also known as eBrokers.

The following companies’ Q1 2025 financial results will be compared below, side-by-side. (note: CY 2024 results can be found here, a section on “What are eBrokers?” can be found here.)

• GoHealth ($GOCO ( 0.0% ) )

• eHealth ($EHTH ( ▼ 7.4% ) )

• SelectQuote ($SLQT ( ▼ 5.16% ) )

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

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 sold Tranzact. The transaction closed at year-end (link).

There are two other large eBrokers worth mentioning. Both are part of major publicly traded carriers but do not break out segment financials:

•  HealthMarkets - part of UnitedHealth Group

• Innovative Financial Group - part of Humana

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Okay, now back to eHealth, GoHealth and SelectQuote. These publicly traded eBrokers do have some unique characteristics worth noting.

SLQT has a healthcare vertical where they can generate additional revenue per customer by cross selling Rx benefits. They now generate a significant amount of revenue from this vertical.

It’s also worth noting that all 3 eBrokers were named in a recent False Claims Complaint filed by the United States (link).

Let’s dive into the most recent financial results…

Side-By-Side Results

To compare and contrast Q1 2025 results we are looking at the Income Statement, a few key Balance Sheet items, LTV metrics, and Sales metrics.

Some key observations:

• All three reported positive operating income for the quarter.

• SLQT led in total revenue, overhead efficiency, and profit margin.

• SLQT also reported the highest Medicare Advantage LTV at $915.

• EHTH maintained the lowest debt load.

• GOCO led in volume, adding over 303,000 policies.

• All three reported Commission Receivables near $1 billion.

YoY % Change

Let’s observe and discuss the year-over-year (“YoY”) % changes.

Revenues

• eHealth led with 22% revenue growth.

• GOCO shifted revenue classification from "Other" to "Commission Revenue".

• SLQT growth was driven by its healthcare segment (e.g., SelectRx).

Expenses

• EHTH slightly reduced expenses.

• GOCO and SLQT saw expense increases.

Profitability (Loss)

• Both GOCO and EHTH moved from operating losses to operating profits.

• SLQT remained the most profitable but saw a 33% YoY profit decline.

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Balance Sheet Changes

• SLQT reduced long-term debt by 43%.

LTV Changes

• MA LTV declined for all three.

Sales

• Overall sales grew 13%, led by MA growth for GOCO and EHTH.

• SLQT grew SelectRx customers by 41% YoY, but MA sales declined.

Note: GOCO reports submitted policies, while SLQT and EHTH report approved policies.

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That’s all for today. I hope this information is helpful!

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)