eHealth Inc. (EHTH, Financial) filed Quarterly Report for the period ended 2010-03-31.
Ehealth Inc. has a market cap of $291.82 million; its shares were traded at around $12.43 with a P/E ratio of 19.73 and P/S ratio of 2.16. EHTH is in the portfolios of RS Investment Management, Jim Simons of Renaissance Technologies LLC.
Revenue attributable to individual and family product offerings represented approximately 90% and 91% of our commission revenue in the three months ended March 31, 2009 and 2010, respectively. We define individual and family product offerings as major medical individual and family health insurance plans, which does not include small business, short-term major medical, stand-alone dental, life and student health insurance product offerings.
Direct. Our direct member acquisition channel consists of consumers who access our website addresses (www.ehealth.com and www.ehealthinsurance.com) either directly or through algorithmic natural search listings on Internet search engines and directories. For the three months ended March 31, 2009 and 2010, applications submitted through us for individual and family health insurance from our direct channel constituted 41% and 43%, respectively, of all individual and family health insurance applications submitted on our website.
Marketing Partners. Our marketing partner member acquisition channel consists of consumers who access our website through a network of affiliate partners and financial services and other companies. Growth in our marketing partner channel depends upon our expanding marketing programs with existing partners and adding new partners to our network. For the three months ended March 31, 2009 and 2010, applications submitted through us for individual and family health insurance products from our marketing partner member acquisition channel constituted approximately 34% and 27%, respectively, of all individual and family health insurance applications submitted on our website.
Online Advertising. Our online advertising member acquisition channel consists of consumers who access our website through paid keyword search advertising from search engines such as Google, MSN and Yahoo!, as well as various Internet marketing programs such as banner advertising and email marketing. For the three months ended March 31, 2009 and 2010, applications submitted through us for individual and family health insurance products from our online advertising channel constituted approximately 25% and 30%, respectively, of all individual and family health insurance applications submitted on our website.
We experienced a 4% decline in the number of applications submitted through us for individual and family health insurance in the three months ended March 31, 2010 compared to the three months ended March 31, 2009. This 4% decrease was comprised of a 25% decline in the number of applications submitted through our marketing partner channel, partially offset by 15% growth in the number of applications submitted through our online advertising channel and 2% growth in the number of applications submitted through our direct channel. We believe that our individual and family health insurance submitted application growth rate may have been adversely impacted by several factors, including confusion relating to the timing and impact of potential healthcare reform legislation, weak macro-economic conditions and the 65% federal subsidy for health benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, or COBRA. We believe that factors that have recently impacted our individual and family health insurance submitted application growth rate will persist and expect near-term application growth rates to remain similar to the past two quarters.
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Ehealth Inc. has a market cap of $291.82 million; its shares were traded at around $12.43 with a P/E ratio of 19.73 and P/S ratio of 2.16. EHTH is in the portfolios of RS Investment Management, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Our commission revenue has grown principally as a result of our penetration of the individual and family health insurance market and corresponding growth in our membership. We estimate that as of March 31, 2010 we had approximately 755,200 members compared to an estimated 728,000 members and 680,100 members at December 31, 2009 and March 31, 2009, respectively. We define a member as an individual covered by an insurance product for which we are entitled to receive compensation. In the quarter ended March 31, 2010 we experienced a decline in number of applications submitted through us for individual and family health insurance, as well as a decline in the number of individuals approved for health insurance by our carriers, compared to the three months ended March 31, 2009. During the three months ended March 31, 2010, the number of individuals approved for individual and family major medical health insurance products declined 6% over the number of individuals that were approved during the three months ended March 31, 2009. Our approved member growth has been impacted by slower growth in submitted applications for individual and family health insurance products, more stringent underwriting by our health insurance carrier partners with respect to individual and family health insurance applications, a decline in the average number of individuals per submitted application that were approved for individual and family health insurance and a decrease in the number of submitted applications for small business and short-term health insurance products. We believe that the decline in individual and family health insurance submitted applications in the quarter ended March 31, 2010 was the result of several factors, including consumer confusion related to the timing and impact of potential federal health care reform legislation, weak macro-economic conditions and the federal subsidy for health benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, or COBRA. The subsidy was implemented pursuant to the American Recovery and Reinvestment Act of 2009 and allows workers who are involuntarily terminated from employment between September 2008 and May 31, 2010 and otherwise eligible for COBRA health benefits to receive a 65% federal subsidy for COBRA health benefits. We believe that factors that have recently impacted our individual and family health insurance submitted application growth rate will persist and expect near-term application growth rates to remain similar to the past two quarters.Revenue attributable to individual and family product offerings represented approximately 90% and 91% of our commission revenue in the three months ended March 31, 2009 and 2010, respectively. We define individual and family product offerings as major medical individual and family health insurance plans, which does not include small business, short-term major medical, stand-alone dental, life and student health insurance product offerings.
Direct. Our direct member acquisition channel consists of consumers who access our website addresses (www.ehealth.com and www.ehealthinsurance.com) either directly or through algorithmic natural search listings on Internet search engines and directories. For the three months ended March 31, 2009 and 2010, applications submitted through us for individual and family health insurance from our direct channel constituted 41% and 43%, respectively, of all individual and family health insurance applications submitted on our website.
Marketing Partners. Our marketing partner member acquisition channel consists of consumers who access our website through a network of affiliate partners and financial services and other companies. Growth in our marketing partner channel depends upon our expanding marketing programs with existing partners and adding new partners to our network. For the three months ended March 31, 2009 and 2010, applications submitted through us for individual and family health insurance products from our marketing partner member acquisition channel constituted approximately 34% and 27%, respectively, of all individual and family health insurance applications submitted on our website.
Online Advertising. Our online advertising member acquisition channel consists of consumers who access our website through paid keyword search advertising from search engines such as Google, MSN and Yahoo!, as well as various Internet marketing programs such as banner advertising and email marketing. For the three months ended March 31, 2009 and 2010, applications submitted through us for individual and family health insurance products from our online advertising channel constituted approximately 25% and 30%, respectively, of all individual and family health insurance applications submitted on our website.
We experienced a 4% decline in the number of applications submitted through us for individual and family health insurance in the three months ended March 31, 2010 compared to the three months ended March 31, 2009. This 4% decrease was comprised of a 25% decline in the number of applications submitted through our marketing partner channel, partially offset by 15% growth in the number of applications submitted through our online advertising channel and 2% growth in the number of applications submitted through our direct channel. We believe that our individual and family health insurance submitted application growth rate may have been adversely impacted by several factors, including confusion relating to the timing and impact of potential healthcare reform legislation, weak macro-economic conditions and the 65% federal subsidy for health benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985, or COBRA. We believe that factors that have recently impacted our individual and family health insurance submitted application growth rate will persist and expect near-term application growth rates to remain similar to the past two quarters.
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