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
- eHealth
- SelectQuote
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.
- 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.
- Revenues up for all eBrokers
- Acquisition and Expense ratios down for all eBrokers
- Operating Profit (loss) improved across the board
- 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
Summary
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.