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 📚 - GoHealth + eTeleQuote = 🤝

3. Compliance Chatter 📢 - summary of Medicare legislation that states have passed in 2024.

4. Sponsor Snapshot 🚀 - brought to you by Medicare Market Insights - Plus

5. DATA VISUAL of the Week 📊 - MA enrollment statistics as of August 2024.

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

DEEP DIVE 📚

GoHealth + e-TeleQuote = 🤝

This wasn’t the planned topic for this week, but some interesting news dropped yesterday that I had to take a look at a bit closer.

GoHealth (“GOCO”) is acquiring e-Telequote. (link)

eTelequote is part of Primerica who just two months ago announced that they were exiting the Senior segment as they did “not have a clear path toward anticipated profitability within an acceptable timeframe in the increasingly challenging senior health distribution market. Further, the industry is facing an uncertain regulatory environment that could adversely impact the business.”

Now they will be part of GoHealth.

Specifically, they “entered into a purchase and subscription agreement which will ultimately lead to the acquisition of e-TeleQuote Insurance, Inc., a distinguished name in the Medicare insurance marketplace. The transaction is expected to close on September 30, 2024.”

Based on the comments by both CEOs, it sounds like GoHealth is acquiring more than just the book of business, but also the people/operations.

Here is what GoHealth’s CEO says:

…and e-Telequote’s CEO:

While there is no information on the structure or terms of the deal, we can look at past results to observe what GoHealth is acquiring, and what their combined financials would have been in 2023, and this past quarter.

Here are the financial statistics for e-Telequote over the past 6 quarters:

Here is what their calendar year 2023 financials would have looked like if they were combined.

If e-Telequote would have been part of GoHealth in 2023, GoHealth would have had:

• 9% higher revenues

• 11% higher expenses

• 25% higher operating loss

• 21% increased commission receivable balance

• 1% higher Medicare Advantage (“MA”) Lifetime Value (“LTV”)

• 7% more approved MA policies

A few thoughts:

• GoHealth already lead their publicly traded peers in terms of Medicare Advantage sales. This would have added to that lead.

• While the numbers above show that operating profits get worse when combined, GoHealth likely sees potential for operating efficiency. Perhaps improving Acquisition and General & Admin. expenses.

• This AEP is setting up to be wild. Overall it’s a positive that e-Telequote agents will be on the phone helping consumers make decisions about their coverage options.

• There are undoubtedly other strategic components behind the scenes that may not be obvious on the surface.

That’s it for this week, I hope it was helpful!

Be sure to take a look at the sponsor snapshot below→

DATA VISUAL of the Week 📊

This week’s visual comes from MMI + and looks at the overall Medicare Advantage enrollment statistics as of August 2024.

The MMI + web app allows you to easily create you own visuals just like this and drill down into the data to gain a deeper understanding of the markets.

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)