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Here are 1-3 brief analogies for eHealth (EHTH):

• eHealth is like Expedia for health insurance.
• eHealth is like LendingTree for health insurance.
• eHealth is like Amazon for health insurance plans.

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• Medicare Plans: An online marketplace for individuals to compare and enroll in Medicare Advantage, Medicare Supplement, and Medicare Part D plans.
• Individual & Family Health Insurance: A platform for consumers to research, compare, and purchase Affordable Care Act (ACA) compliant and other individual and family health insurance plans.
• Small Business Health Insurance: Services enabling small businesses to find and enroll in group health insurance plans for their employees.
• Ancillary Health Products: Offers supplemental insurance products including dental, vision, and life insurance plans.

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Major Customers of eHealth (EHTH)

eHealth, Inc. (symbol: EHTH) primarily serves individual consumers directly, operating as an online health insurance marketplace. The company's business model is predominantly Business-to-Consumer (B2C), connecting individuals with a variety of health insurance plans from numerous carriers. Therefore, it sells primarily to individuals rather than other companies.

The major categories of individual customers that eHealth serves are:

• Seniors and other Medicare-eligible individuals: This significant customer segment includes individuals aged 65 and older, as well as younger individuals with certain disabilities, who are seeking to enroll in Medicare Advantage plans, Medicare Supplement (Medigap) plans, or Medicare Prescription Drug Plans. This represents a substantial portion of eHealth's business.
• Individuals and families under 65: This category comprises people who need to purchase health insurance for themselves and their families outside of an employer-sponsored plan or government programs like Medicaid. They often seek Affordable Care Act (ACA) compliant plans, short-term health insurance, or other individual and family health plans.

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• UnitedHealth Group (UNH)
• Elevance Health (ELV)
• CVS Health (CVS)
• Cigna Group (CI)
• Humana (HUM)
• Centene (CNC)

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Derrick Duke
Chief Executive Officer and Director
Derrick Duke became CEO in September 2025. He most recently served as Chief Executive Officer of Magellan Health, a national healthcare management organization and subsidiary of Centene Corporation. During his tenure at Magellan, he also held dual roles as Chief Financial Officer and Chief Operating Officer, overseeing finance, business transformation, and behavioral health clinical services. Prior to Magellan, he spent nearly 16 years at HealthMarkets, one of the largest U.S. health insurance agencies, holding multiple senior roles including Chief Investment Officer, Chief Financial Officer, and Chief Operating Officer. He helped lead HealthMarkets through its acquisition by UnitedHealth Group in 2019.

John Dolan
Senior Vice President, Chief Financial Officer
John Dolan was appointed SVP, CFO on August 31, 2024. He brings extensive financial experience from previous senior roles at BNY Mellon and American Express.

Michelle Barbeau
Senior Vice President, Chief Revenue Officer
Michelle Barbeau has served as eHealth's Chief Revenue Officer since January 2024. She previously served as eHealth's Chief Marketing Officer from September 2022 to January 2024.

Gavin Galimi
Senior Vice President, General Counsel & Corporate Secretary
Gavin Galimi serves as eHealth's Senior Vice President, General Counsel & Corporate Secretary.

Ketan Babaria
Senior Vice President, Chief Digital & AI Officer
Ketan Babaria serves as eHealth's Senior Vice President, Chief Digital & AI Officer.

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1. Regulatory Environment and Changes

eHealth operates within a deeply complex and evolving regulatory environment, which is identified as the single biggest headwind for the company. Regulatory shifts directly impact eHealth's most lucrative Medicare segment, potentially limiting market expansion, introducing revenue volatility, and heightening risks to commission-based earnings. The company faces ongoing changes in laws, regulations, and guidelines related to healthcare reform and marketing practices. Furthermore, eHealth is involved in a Department of Justice (DOJ) lawsuit alleging violations of the federal False Claims Act, the outcome of which is unpredictable and presents a significant regulatory risk.

2. Profitability Concerns and Customer Acquisition/Retention

Despite efforts towards a turnaround, eHealth continues to face profitability concerns. The company reported a net loss in Q3 2025, raising ongoing questions about its path to sustained profitability. While management has reduced marketing spend in the Medicare segment to control costs, this strategy carries the risk of lower brand visibility and could slow customer acquisition, particularly during the highly competitive Annual Enrollment Period (AEP). Declining estimated membership also indicates product weakness and struggles with acquiring new customers. There are also concerns about a projected increase in customer turnover during the AEP, which raises questions about the company's long-term value (LTV) assumptions for its members. Effective customer retention is critical as it directly drives the lifetime value of a policy.

3. Intense Competition

The markets in which eHealth operates are intensely competitive. The company faces competition from numerous current and future competitors, including government-run health insurance exchanges. The inability to compete effectively in this crowded landscape could adversely affect eHealth's business, operating results, and financial condition.

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The increasing strategic emphasis and investment by major health insurance carriers in their own direct-to-consumer sales channels, both online and via call centers. As carriers enhance their digital capabilities and brand recognition, they could gradually disintermediate third-party online brokers like eHealth, impacting commission revenue and market share.

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• Medicare Supplement Health Insurance (Medigap): The U.S. Medicare Supplement health insurance market was valued at approximately $39.1 billion in total earned premiums in 2024. Another estimate placed the market size at $26.97 billion in 2022, with a projection to reach $39.26 billion by 2030, growing at a compound annual growth rate (CAGR) of 5.0% from 2023 to 2030.
• Medicare Advantage Plans: In 2024, Medicare Advantage enrollment in the U.S. reached a record 34.5 million beneficiaries, representing 51% of the country's Medicare-eligible population. Other data shows 32.8 million people enrolled in Medicare Advantage plans in 2024, accounting for 54% of the eligible Medicare population. Globally, the Medicare Advantage market size is projected to reach $456.6 billion in 2023 and is anticipated to reach $758.5 billion by 2032, with a CAGR of 5.8% from 2023 to 2032.
• Individual and Family Health Insurance Plans: The U.S. individual health insurance market size is estimated at $35.50 billion in 2024 and is expected to grow to approximately $67.57 billion by 2034, with a CAGR of 6.65% between 2024 and 2034. The broader North America individual health insurance market was valued at $1.61 trillion in 2022 and is projected to reach $2.56 trillion by 2030, expanding at a CAGR of 6.1% from 2023 to 2030.

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eHealth (EHTH) is anticipated to drive future revenue growth over the next 2-3 years through several key strategies and market dynamics:

1. Growth in Medicare Advantage (MA) Enrollments: eHealth's primary focus on the Medicare market, particularly Medicare Advantage, is expected to continue being a significant revenue driver. The company has seen increased Medicare Advantage submissions and approved members, and the market is projected to grow, with Medicare Advantage penetration potentially reaching 60% by 2030.
2. Leveraging Digital Innovation and Artificial Intelligence (AI): Investments in technology-driven solutions and digital tools are central to enhancing user experience, attracting a broader customer base, and streamlining operations. eHealth has launched an AI-powered voice agent and continues to emphasize technological advancements to improve efficiency and customer interaction.
3. Enhanced Customer Retention Initiatives: Strategic programs focused on comprehensive member retention are designed to encourage consumers to return to the platform for coverage reviews and plan shopping. These initiatives are crucial for increasing customer lifetime value.
4. Product Diversification: To mitigate business seasonality and expand its offerings, eHealth is diversifying its product portfolio beyond core Medicare Advantage plans. This includes expanding into year-round products such as Medicare Supplement and various ancillary products like dental, vision, and hospital indemnity plans.
5. Favorable Market Dynamics and Increased Commission Rates: eHealth anticipates benefiting from a more favorable competitive environment, including a reduction in broker capacity as some competitors exit the market. Additionally, the company has reported a year-over-year increase in commission rates, with favorable 2026 Medicare Advantage rates expected to further positively impact broker commissions.

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Share Repurchases

• eHealth reported $-3.4 million in repurchase of stock for the trailing twelve months ended June 2025, representing the cash outflow to reacquire common stock.

Share Issuance

• On April 30, 2021, eHealth issued and sold 2.25 million shares of Series A Preferred Stock at an aggregate purchase price of $225.0 million to an investment vehicle of H.I.G. Capital in a private placement.
• In March 2020, eHealth priced a follow-on public offering of 1,800,000 shares of its common stock at $115.00 per share, with underwriters having a 30-day option to purchase up to 270,000 additional shares.
• In October 2025, eHealth granted inducement restricted stock unit (RSU) awards, including 300,000 shares vesting over three years and another 300,000 performance-based shares for the incoming CEO, and 5,000 shares for a new non-executive employee.

Inbound Investments

• In January 2021, an affiliate of H.I.G. Capital made a $225 million strategic investment in eHealth by purchasing convertible preferred stock, with the transaction closing on April 30, 2021.
• The investment from H.I.G. Capital aimed to strengthen eHealth's financial position and accelerate strategic initiatives, including driving online enrollment growth and investing in its telesales team.
• By September 2023, due to a covenant breach on its preferred shares, H.I.G. Capital gained additional governance control, including C-suite hiring power and budget setting.

Capital Expenditures

• Capital expenditures for property, equipment, and similar items were reported as less than $0.5 million in all of 2022 and $0.3 million year-to-date in 2023.
• eHealth has focused investments on technology, branding, retention, and digital platform enhancements, including scaling the deployment of AI voice agents.
• These investments are intended to improve conversion rates, cost efficiency, and the overall consumer experience.