Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 1-May-15 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | EHTH | |
Entity Registrant Name | eHealth, Inc. | |
Entity Central Index Key | 1333493 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 17,908,942 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $39,365 | $51,415 |
Accounts receivable | 14,614 | 8,200 |
Deferred income taxes | 386 | 386 |
Prepaid expenses and other current assets | 7,052 | 6,474 |
Total current assets | 61,417 | 66,475 |
Property and equipment, net | 8,944 | 9,640 |
Other assets | 3,875 | 5,679 |
Intangible assets, net | 10,429 | 10,774 |
Goodwill | 14,096 | 14,096 |
Total assets | 98,761 | 106,664 |
Current liabilities: | ||
Accounts payable | 2,303 | 5,961 |
Accrued compensation and benefits | 8,222 | 8,204 |
Accrued marketing expenses | 1,551 | 8,707 |
Deferred revenue | 882 | 869 |
Accrued restructuring charges | 1,436 | 0 |
Other current liabilities | 4,752 | 2,996 |
Total current liabilities | 19,146 | 26,737 |
Non-current liabilities | 6,650 | 6,449 |
Stockholders’ equity: | ||
Common stock | 29 | 29 |
Additional paid-in capital | 260,575 | 259,007 |
Treasury stock, at cost | -199,998 | -199,998 |
Retained earnings | 12,179 | 14,261 |
Accumulated other comprehensive income | 180 | 179 |
Total stockholders’ equity | 72,965 | 73,478 |
Total liabilities and stockholders’ equity | $98,761 | $106,664 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements Of Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue | ||
Commission | $57,819 | $45,577 |
Other | 3,469 | 5,363 |
Total revenue | 61,288 | 50,940 |
Operating costs and expenses: | ||
Cost of revenue | 2,414 | 2,113 |
Marketing and advertising | 25,451 | 23,109 |
Customer care and enrollment | 11,861 | 9,713 |
Technology and content | 10,773 | 10,467 |
General and administrative | 7,973 | 8,294 |
Restructuring charges | 4,483 | 0 |
Amortization of intangible assets | 345 | 354 |
Total operating costs and expenses | 63,300 | 54,050 |
Loss from operations | -2,012 | -3,110 |
Other expense, net | -14 | -39 |
Loss before provision for income taxes | -2,026 | -3,149 |
Provision (benefit) for income taxes | 56 | -1,596 |
Net loss | -2,082 | -1,553 |
Foreign currency translation adjustment | 1 | 16 |
Comprehensive loss | ($2,081) | ($1,537) |
Net income (loss) per share: | ||
Basic (in usd per share) | ($0.12) | ($0.08) |
Diluted (in usd per share) | ($0.12) | ($0.08) |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | ||
Basic (in shares) | 17,844 | 18,849 |
Diluted (in shares) | 17,844 | 18,849 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements Of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating activities | ||
Net loss | ($2,082) | ($1,553) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Deferred income taxes | 0 | -1,608 |
Depreciation and amortization | 1,058 | 999 |
Amortization of book-of-business consideration | 1,962 | 1,574 |
Amortization of intangible assets | 345 | 354 |
Stock-based compensation expense | 2,031 | 2,445 |
Deferred rent | 27 | 8 |
Changes in operating assets and liabilities: | ||
Accounts receivable | -6,400 | -3,800 |
Prepaid expenses and other assets | -736 | -3,496 |
Accounts payable | -3,658 | -1,973 |
Accrued compensation and benefits | 16 | -1,385 |
Accrued marketing expenses | -7,156 | 3,181 |
Deferred revenue | -152 | -382 |
Accrued restructuring charges | 1,771 | 0 |
Other current liabilities | 1,802 | 226 |
Net cash used in operating activities | -11,172 | -5,410 |
Investing activities | ||
Purchases of property and equipment | -384 | -1,115 |
Purchase of intangible assets | 0 | -4,500 |
Net cash used in investing activities | -384 | -5,615 |
Financing activities | ||
Net proceeds from exercise of common stock options | 0 | 2,283 |
Cash used to net-share settle equity awards | -480 | -3,304 |
Excess tax benefits from stock-based compensation | 0 | 3,220 |
Principal payments in connection with capital leases | -19 | -13 |
Net cash provided by (used in) financing activities | -499 | 2,186 |
Effect of exchange rate changes on cash and cash equivalents | 5 | 12 |
Net decrease in cash and cash equivalents | -12,050 | -8,827 |
Cash and cash equivalents at beginning of period | 51,415 | 107,055 |
Cash and cash equivalents at end of period | $39,365 | $98,228 |
Summary_Of_Business_And_Signif
Summary Of Business And Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary Of Business And Significant Accounting Policies | Note 1 - Summary of Business and Significant Accounting Policies |
Description of Business—eHealth, Inc. (the “Company,” “eHealth,” “we” or “us”) is the leading private online source of health insurance for individuals, families and small businesses in the United States. Through our website addresses (www.eHealth.com, www.eHealthInsurance.com, www.eHealthMedicare.com, www.Medicare.com and www.PlanPrescriber.com), consumers can get quotes from leading health insurance carriers, compare plans side-by-side, and apply for and purchase individual and family, Medicare-related, small business and ancillary health insurance plans. We actively market the availability of Medicare-related insurance plans and offer Medicare plan comparison tools and educational materials for Medicare-related insurance plans, including Medicare Advantage, Medicare Supplement and Medicare Part D prescription drug plans. Our ecommerce technology also enables us to deliver consumers’ health insurance applications electronically to health insurance carriers. As a result, we simplify and streamline the complex and traditionally paper-intensive health insurance sales and purchasing process. We are licensed to market and sell health insurance in all 50 states and the District of Columbia. | |
Basis of Presentation—The accompanying condensed consolidated balance sheet as of March 31, 2015, the condensed consolidated statements of comprehensive loss for the three months ended March 31, 2014 and 2015 and the condensed consolidated statements of cash flows for the three months ended March 31, 2014 and 2015, respectively, are unaudited. The condensed consolidated balance sheet data as of December 31, 2014 was derived from the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2014, which was filed with the Securities and Exchange Commission on March 16, 2015. The accompanying statements should be read in conjunction with the audited consolidated financial statements and related notes contained in our Annual Report on Form 10-K. | |
The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, for interim financial information. Accordingly, they do not include all of the financial information and footnotes required by U.S. GAAP for complete financial statements. The unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2014, and include all adjustments necessary for the fair presentation of eHealth’s statement of financial position as of March 31, 2015, its results of operations for the three months ended March 31, 2014 and 2015 and its cash flows for the three months ended March 31, 2014 and 2015. All adjustments are of a normal recurring nature. The results for the three months ended March 31, 2015 are not necessarily indicative of the results to be expected for any subsequent period or for the fiscal year ending December 31, 2015. | |
Seasonality—The majority of our individual and family plans are sold in the open enrollment period as defined under the federal Patient Protection and Affordable Care Act and related amendments in the Health Care and Education Reconciliation Act. In the fourth quarter of 2014 and the first quarter of 2015, during the second open enrollment period that began on November 15, 2014 and ended on February 15, 2015, the number of individual and family applications submitted increased compared to periods outside of the open enrollment period. In the fourth quarter of 2013 and first quarter of 2014, there was a significant increase, relative to historical levels, in the number of individual and family applications submitted during the initial open enrollment period, that began on October 1, 2013 and ended on March 31, 2014. | |
The majority of Medicare plans are sold in our fourth quarter during the Medicare annual enrollment period, when Medicare-eligible individuals are permitted to change their Medicare Advantage and Medicare Part D prescription drug coverage for the following year. As a result, we generate a significant amount of Medicare plan-related revenue in the fourth quarter of the year resulting from the sale of new Medicare plans. Additionally, historically we recognized a majority of our renewal Medicare Advantage and Medicare Part D prescription drug plan commission revenue in the first quarter of each year as the majority of policies renewed on January 1 of each year. This trend continued and became more pronounced in 2015 due to Centers for Medicare and Medicaid Services ("CMS"), regulations that changed the definition of a plan year from being twelve months from the effective date of a policy to January 1 through December 31 of each year, causing all Medicare Advantage and Medicare Part D prescription drug policies to renew on January 1 of each year. | |
Since a significant portion of our marketing and advertising expenses consists of expenses incurred in search engine advertising at the time a consumer clicks on an advertisement and payments owed to our marketing partners in connection with health insurance applications submitted on our ecommerce platform, those expenses are influenced by seasonal submitted application patterns. As a result of the second open enrollment period for individual and family health insurance that began on November 15, 2014 and ended on February 15, 2015, marketing and advertising expenses increased during the fourth quarter of 2014 and first quarter of 2015, consistent with the increases in submitted applications, compared to periods outside the open enrollment period. In addition, due to the initial open enrollment period for individual and family health insurance that began in October 2013 and ended on March 31, 2014, marketing and advertising expenses increased significantly in the fourth quarter of 2013 and first quarter of 2014, relative to historical levels, and decreased significantly during the second and third quarters of 2014, consistent with the respective increases and decreases in submitted applications. | |
In the first quarter of 2015, the first and fourth quarters of 2014 and the fourth quarter of 2013, we incurred a net loss due in part to our higher marketing and advertising expenses associated with the individual and family health insurance applications during the open enrollment periods for individual and family health insurance and Medicare related health insurance applications during the Medicare annual enrollment periods without a commensurate level of additional revenue resulting from those applicants during the enrollment periods. Conversely, in both the second and third quarters of 2014, we recorded net income due to significantly lower marketing and advertising expenses associated with the decrease in the number of individual and family health insurance applications outside of the open enrollment period and increased revenue resulting from members who submitted applications during the open enrollment period in the prior respective quarters. | |
Recent Accounting Pronouncements—In February 2015, the FASB issued Accounting Standards Update No. 2015-02 (ASU 2015-02) "Consolidation (Topic 810): Amendments to the Consolidation Analysis." ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. It is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. We are currently in the process of evaluating the impact of the adoption of ASU 2015-02 on our consolidated financial statements. | |
In April 2015, the FASB issued Accounting Standards Update No. 2015-05 (ASU 2015-05), "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement." ASU 2015-05 provides guidance to clarify the customer’s accounting for fees paid in a cloud computing arrangement. It is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. We are currently in the process of evaluating the impact of the adoption of ASU 2015-05 on our consolidated financial statements. |
Balance_Sheet_Accounts
Balance Sheet Accounts | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Balance Sheet Related Disclosures [Abstract] | ||||||||
Balance Sheet Accounts | Note 2 – Balance Sheet Accounts | |||||||
Cash and Cash Equivalents—As of December 31, 2014 and March 31, 2015, our cash equivalents consisted of money market accounts that invested in U.S. government-sponsored enterprise bonds and discount notes, U.S. government treasury bills and notes and repurchase agreements collateralized by U.S. government obligations. At December 31, 2014 and March 31, 2015, our cash equivalents carried no unrealized gains or losses and we did not realize any significant gains or losses on sales of cash equivalents during the three months ended March 31, 2014 and 2015. | ||||||||
As of December 31, 2014 and March 31, 2015, our cash and cash equivalent balances were invested as follows (in thousands): | ||||||||
December 31, 2014 | March 31, 2015 | |||||||
Cash | $ | 15,793 | $ | 14,742 | ||||
Money market funds | 35,622 | 24,623 | ||||||
Total cash and cash equivalents | $ | 51,415 | $ | 39,365 | ||||
Our money market funds reflect unadjusted quoted prices in active markets for identical assets and are classified as Level 1 as of December 31, 2014 and March 31, 2015. | ||||||||
Accounts Receivable—As of December 31, 2014 and March 31, 2015, our accounts receivable consisted of the following (in thousands): | ||||||||
December 31, 2014 | March 31, 2015 | |||||||
Medicare renewal commission receivable | $ | 355 | $ | 12,790 | ||||
Accounts receivable - from other revenues | 2,462 | 1,329 | ||||||
Other commissions receivable | 5,383 | 495 | ||||||
Total accounts receivable | $ | 8,200 | $ | 14,614 | ||||
As a result of a regulation issued by CMS, which changed the definition of a plan year from being 12-months from the effective date of a policy to January 1 through December 31 of each year, all Medicare Advantage and Medicare Part D prescription drug policies will renew on January 1 of each year, resulting in our recording of all Medicare Advantage and Medicare Part D prescription drug plan renewal commission revenue in the first quarter of each year. We fully implemented this new rule in our first quarter ended March 31, 2015. We recognize a full year of renewal commission revenue at the time a policy is renewed, however, renewal commissions for Medicare Advantage products are paid monthly. As a result, the majority of renewal commissions for that product will be collected in quarters subsequent to the first quarter. |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Stockholders' Equity | Note 3 – Stockholders’ Equity | ||||||||||||
Stock Plans—The following table summarizes activity under our 2014 Equity Incentive Plan, 2006 Equity Incentive Plan, 1998 Stock Plan and 2005 Stock Plan (collectively, the “Stock Plans”) (in thousands): | |||||||||||||
Shares Available for Grant | |||||||||||||
Shares available for grant December 31, 2014 | 4,164 | ||||||||||||
Restricted stock units granted | (200 | ) | |||||||||||
Restricted stock units cancelled (1) | 19 | ||||||||||||
Options cancelled (2) | 9 | ||||||||||||
Shares available for grant March 31, 2015 | 3,992 | ||||||||||||
-1 | Restricted stock units cancelled does not include 9,000 restricted stock units cancelled under the 2006 Equity Incentive Plan. | ||||||||||||
-2 | Options cancelled does not include 116,000 stock options cancelled under the 2006 Equity Incentive Plan. | ||||||||||||
We maintain our 2006 Equity Incentive Plan, 2005 Stock Plan and 1998 Stock Plan, under which we previously granted options to purchase shares of our common stock and restricted stock units. The 2006 Equity Incentive Plan was terminated with respect to the grant of additional awards on June 12, 2014, upon adoption of our 2014 Equity Incentive Plan. The 2005 Stock Plan and 1998 Stock Plan were terminated with respect to the grant of additional awards upon the effectiveness of the 2006 Equity Incentive Plan. We will continue to issue new shares of common stock upon vesting of restricted stock units and the exercise of stock options previously granted under the 2006 Equity Incentive Plan, 2005 Stock Plan and 1998 Stock Plan. | |||||||||||||
The following table summarizes stock option activity under the Stock Plans (in thousands, except per share amounts and weighted average remaining contractual life data): | |||||||||||||
Number of Stock Options | Weighted Average Exercise Price | Weighted-Average Remaining Contractual Life (years) | Aggregate Intrinsic Value (1) | ||||||||||
Balance outstanding at December 31, 2014 | 1,724 | $ | 18.5 | 3.31 | $ | 12,884 | |||||||
Granted | — | $ | — | ||||||||||
Exercised | — | $ | — | $ | — | ||||||||
Cancelled | (125 | ) | $ | 22.66 | |||||||||
Balance outstanding at March 31, 2015 | 1,599 | $ | 18.17 | 3.12 | $ | 80 | |||||||
Vested and expected to vest at March 31, 2015 | 1,571 | $ | 18.08 | 3.09 | $ | 80 | |||||||
Exercisable at March 31, 2015 | 1,233 | $ | 17.01 | 2.68 | $ | 80 | |||||||
-1 | The aggregate intrinsic value is calculated as the difference between eHealth’s closing stock price as of December 31, 2014 and March 31, 2015 and the exercise price of in-the-money options as of those dates. | ||||||||||||
The total fair value of stock options vested during the three months ended March 31, 2014 and 2015 was $0.6 million and $0.5 million, respectively. | |||||||||||||
The following table summarizes restricted stock unit activity, including performance-based and market-based restricted stock unit activity, under the Stock Plans (in thousands, except per share amounts and weighted average remaining contractual life data): | |||||||||||||
Number of Restricted Stock Units (1) | Weighted-Average Grant Date Fair Value | Weighted-Average Remaining Contractual Life (years) | Aggregate Intrinsic Value (2) | ||||||||||
Balance outstanding as of December 31, 2014 | 873 | $ | 30.86 | 2.52 | $ | 21,753 | |||||||
Granted | 200 | $ | 6.69 | ||||||||||
Vested | (124 | ) | $ | 17.95 | |||||||||
Cancelled | (28 | ) | $ | 30.56 | |||||||||
Balance outstanding as of March 31, 2015 | 921 | $ | 27.37 | 2.93 | $ | 8,642 | |||||||
-1 | Includes certain restricted stock units with both service and performance-based or market-based vesting criteria granted to our executive officers. | ||||||||||||
-2 | The aggregate intrinsic value is calculated as eHealth’s closing stock price as of December 31, 2014 and March 31, 2015 multiplied by the number of restricted stock units outstanding as of December 31, 2014 and March 31, 2015, respectively. | ||||||||||||
The fair value of the restricted stock units is based on eHealth’s stock price on the date of grant, and compensation expense related to these awards is recognized on a straight-line basis over the vesting period. The fair value of performance-based restricted stock units is based on eHealth’s stock price on the date of grant, and compensation expense related to these awards is recognized on an accelerated basis over the vesting period. The amount of expense recorded for performance-based restricted stock units is based on expected attainment of performance criteria. The total fair value of restricted stock units vested during the three months ended March 31, 2014 and 2015 was $8.4 million and $1.2 million, respectively. | |||||||||||||
Stock Repurchase Programs—We had no stock repurchase activity during the three months ended March 31, 2015. In addition to the shares repurchased under our past repurchase programs as of March 31, 2015, we have in treasury 327,947 shares that were previously surrendered by employees to satisfy tax withholdings due in connection with the vesting of certain restricted stock units. As of December 31, 2014 and March 31, 2015, we had a total of 10,945,607 shares and 10,991,835 shares, respectively, held in treasury. | |||||||||||||
Stock-Based Compensation—In March 2015, we granted market-based stock unit awards to certain members of senior management. Each market-based stock unit award represents a contingent right to receive certain shares of the Company’s common stock upon the attainment of certain stock prices over a four-year performance period. Once a stock price threshold is achieved, the portion of the award related to that threshold will vest on the one-year anniversary of the date of achievement, subject to the employee's continued service through each vesting date. Compensation expense related to these awards is recognized on an accelerated basis over the requisite service period. The weighted-average fair value of the market-based stock unit awards was determined using the Monte Carlo simulation model incorporating the following weighted average assumptions: | |||||||||||||
Three Months Ended March 31, | |||||||||||||
2015 | |||||||||||||
Expected term | 2.59 years | ||||||||||||
Expected volatility | 64.7 | % | |||||||||||
Expected dividend yield | — | % | |||||||||||
Risk-free interest rate | 1.13 | % | |||||||||||
Weighted-average fair value | $ | 6.69 | |||||||||||
The following table summarizes stock-based compensation expense recorded during the three months ended March 31, 2014 and 2015 (in thousands): | |||||||||||||
Three Months Ended March 31, | |||||||||||||
2014 | 2015 | ||||||||||||
Common stock options | $ | 642 | $ | 462 | |||||||||
Restricted stock units | 1,803 | 1,569 | |||||||||||
Total stock-based compensation expense | $ | 2,445 | $ | 2,031 | |||||||||
The following table summarizes stock-based compensation expense by operating function for the three months ended March 31, 2014 and 2015 (in thousands): | |||||||||||||
Three Months Ended March 31, | |||||||||||||
2014 | 2015 | ||||||||||||
Marketing and advertising | $ | 657 | $ | 591 | |||||||||
Customer care and enrollment | 96 | 117 | |||||||||||
Technology and content | 562 | 435 | |||||||||||
General and administrative | 1,130 | 775 | |||||||||||
Restructuring charges | — | 113 | |||||||||||
Total stock-based compensation expense | $ | 2,445 | $ | 2,031 | |||||||||
Income_Taxes
Income Taxes | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Income Taxes | Note 4 – Income Taxes | |||||||
The following table summarizes our provision for income taxes and our effective tax rates for the three months ended March 31, 2014 and 2015 (in thousands, except effective tax rate): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2015 | |||||||
Income (loss) before provision for income taxes | $ | (3,149 | ) | $ | (2,026 | ) | ||
Provision (benefit) for income taxes | $ | (1,596 | ) | $ | 56 | |||
Effective tax rate | 50.7 | % | (2.8 | )% | ||||
Our effective tax rate in the three months ended March 31, 2014 was higher than statutory federal and state tax rates due primarily to non-deductible lobbying expenses. Our effective tax rate in the three months ended March 31, 2015 was lower than statutory federal and state tax rates due primarily to the change in valuation allowance, partially offset by certain discrete items. | ||||||||
During the three months ended March 31, 2014, excess federal and state tax benefits related to share-based payments resulted in increases of $3.2 million in Additional Paid-In Capital in the condensed consolidated balance sheets. These amounts are also classified in the condensed consolidated statements of cash flows as both a reduction to operating cash flows and as a financing cash inflow. During the three months ended March 31, 2015, no excess federal and state tax benefits related to share-based payments were recognized. |
Net_Income_Per_Share
Net Income Per Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Net Income Per Share | Net Income (Loss) Per Share | |||||||
Basic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding for the period. Diluted net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of common and common equivalent shares outstanding during the period. Diluted net income (loss) per share is computed giving effect to all potential dilutive common stock equivalent shares, including options and restricted stock units. The dilutive effect of outstanding awards is reflected in diluted net income (loss) per share by application of the treasury stock method. | ||||||||
The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share amounts): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2015 | |||||||
Basic and diluted: | ||||||||
Numerator: | ||||||||
Net loss allocated to common stock | $ | (1,553 | ) | $ | (2,082 | ) | ||
Denominator: | ||||||||
Weighted average number of common stock shares outstanding | 18,849 | 17,844 | ||||||
Net loss per share—basic and diluted: | $ | (0.08 | ) | $ | (0.12 | ) | ||
For each of the three month periods ended March 31, 2014 and 2015, we had securities outstanding that could potentially dilute net income per share, but the shares from the assumed exercise of these securities were excluded in the computation of diluted net loss per share as their effect would have been anti-dilutive. The number of outstanding weighted average anti-dilutive shares that were excluded from the computation of diluted net loss per share consisted of the following (in thousands): | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2015 | |||||||
Common stock options | 1,932 | 1,702 | ||||||
Restricted stock units | 745 | 618 | ||||||
Total | 2,677 | 2,320 | ||||||
Geographic_Information_And_Sig
Geographic Information And Significant Customers | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Geographic Information And Significant Customers | Note 6 – Geographic Information and Significant Customers | |||||||
Geographic Information—As of December 31, 2014 and March 31, 2015, our long-lived assets consisted primarily of property and equipment, goodwill and other indefinite-lived intangible assets and finite-lived intangible assets. Our long-lived assets are attributed to the geographic location in which they are located. Long-lived assets by geographical area were as follows (in thousands): | ||||||||
As of | As of | |||||||
December 31, 2014 | March 31, 2015 | |||||||
United States | $ | 39,752 | $ | 36,885 | ||||
China | 437 | 459 | ||||||
Total | $ | 40,189 | $ | 37,344 | ||||
Significant Customers—Substantially all revenue for the three months ended March 31, 2014 and 2015 was generated from customers located in the United States. Carriers representing 10% or more of our total revenue in the three months ended March 31, 2014 and 2015 are presented in the table below: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2015 | |||||||
Humana | 26 | % | 34 | % | ||||
WellPoint (1) | 11 | % | 8 | % | ||||
UnitedHealthcare (2) | 11 | % | 9 | % | ||||
Aetna (3) | 11 | % | 9 | % | ||||
(1)Wellpoint also includes other carriers owned by Wellpoint. | ||||||||
(2)UnitedHealthcare also includes other carriers owned by UnitedHealthcare. | ||||||||
(3)Aetna also includes other carriers owned by Aetna. | ||||||||
Commission revenue attributable to major medical individual and family health insurance plans was approximately 60% and 38% of our commission revenue in the three months ended March 31, 2014 and 2015, respectively. We define our individual and family plan offerings as major medical individual and family health insurance plans, which do not include small business, Medicare-related health insurance plan offerings and other ancillary products such as short-term, stand-alone dental, life, vision, and accident insurance plan offerings. | ||||||||
As of December 31, 2014, three customers represented 30%, 17% and 14%, respectively, of our $8.2 million outstanding accounts receivable balance. As of March 31, 2015, two customers represented 62% and 10%, respectively, of our $14.6 million outstanding accounts receivable balance. No other customers represented 10% or more of our total accounts receivable at December 31, 2014 and March 31, 2015. We believe the potential for collection issues with any of our customers is minimal as of March 31, 2015. Accordingly, our estimate for uncollectible amounts at March 31, 2015 was not material. |
Restructuring_Charges
Restructuring Charges | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||
Restructuring Charges | Note 7 – Restructuring Charges | |||||||||||||||
In March 2015, we implemented an organizational restructuring and cost reduction plan designed to rebalance our resources and help reduce our cost structure as a result of lower than expected individual and family health insurance plan membership and revenue. As part of the plan, we eliminated 160 full-time positions in the United States, representing approximately 15% of our workforce primarily in our technology and content and customer care and enrollment groups, and to a lesser extent, in our marketing and advertising and general and administrative groups. We incurred pre-tax restructuring charges of approximately $3.9 million for employee termination benefits and related costs as well as $0.6 million in other pre-tax restructuring charges, primarily consisting of facility costs. The majority of the restructuring charges were recorded in the first quarter of 2015, when the activities comprising the plan were substantially completed. In March 2015, we also eliminated certain positions in our China operation. | ||||||||||||||||
The following table summarizes the total cash and non-cash restructuring charges recorded during the three months ended March 31, 2015 (in thousands): | ||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||
Employee termination costs | $ | 3,734 | ||||||||||||||
Non-cash employee termination costs - stock-based compensation | 113 | |||||||||||||||
Facility and other termination costs | 636 | |||||||||||||||
Total restructuring charges | $ | 4,483 | ||||||||||||||
The following table summarizes the restructuring charges liability activity during the three months ended March 31, 2015 (in thousands): | ||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||
Beginning balance | Charges | Payments | Ending balance | |||||||||||||
Employee termination costs | $ | — | $ | 3,734 | $ | (2,567 | ) | $ | 1,167 | |||||||
Facility and other termination costs | — | 636 | (33 | ) | 603 | |||||||||||
Total restructuring liability | $ | — | $ | 4,370 | $ | (2,600 | ) | $ | 1,770 | |||||||
Less: non-current restructuring charges associated with facilities | (334 | ) | ||||||||||||||
Restructuring charges liability - current | $ | 1,436 | ||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 8 - Commitments and Contingencies |
Legal Proceedings—On January 26 and March 10, 2015, two purported class action lawsuits were filed against us, our chairman of the board and chief executive officer, Gary L. Lauer (“Mr. Lauer”), and our senior vice president and chief financial officer, Stuart M. Huizinga (“Mr. Huizinga”), in the United States District Court for the Northern District of California. The complaints allege that the defendants made false and misleading statements regarding our financial performance, guidance and operations during alleged class periods of October 31, 2014 to January 14, 2015 and June 5, 2014 to January 14, 2015, respectively. The complaints allege that we and Messrs. Lauer and Huizinga violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaints seek compensatory damages, attorneys’ fees and costs, rescission or a rescissory measure of damages, equitable/injunctive relief and such other relief as the court deems proper. | |
In the ordinary course of our business, we have received and may continue to receive inquiries from state regulators relating to various matters. At December 31, 2014 and March 31, 2015, we had no material liabilities included in our consolidated balance sheet for outstanding legal claims. |
Summary_Of_Business_And_Signif1
Summary Of Business And Significant Accounting Policies (Policy) | 3 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Description Of Business | Description of Business—eHealth, Inc. (the “Company,” “eHealth,” “we” or “us”) is the leading private online source of health insurance for individuals, families and small businesses in the United States. Through our website addresses (www.eHealth.com, www.eHealthInsurance.com, www.eHealthMedicare.com, www.Medicare.com and www.PlanPrescriber.com), consumers can get quotes from leading health insurance carriers, compare plans side-by-side, and apply for and purchase individual and family, Medicare-related, small business and ancillary health insurance plans. We actively market the availability of Medicare-related insurance plans and offer Medicare plan comparison tools and educational materials for Medicare-related insurance plans, including Medicare Advantage, Medicare Supplement and Medicare Part D prescription drug plans. Our ecommerce technology also enables us to deliver consumers’ health insurance applications electronically to health insurance carriers. As a result, we simplify and streamline the complex and traditionally paper-intensive health insurance sales and purchasing process. We are licensed to market and sell health insurance in all 50 states and the District of Columbia. |
Basis Of Presentation | Basis of Presentation—The accompanying condensed consolidated balance sheet as of March 31, 2015, the condensed consolidated statements of comprehensive loss for the three months ended March 31, 2014 and 2015 and the condensed consolidated statements of cash flows for the three months ended March 31, 2014 and 2015, respectively, are unaudited. The condensed consolidated balance sheet data as of December 31, 2014 was derived from the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2014, which was filed with the Securities and Exchange Commission on March 16, 2015. The accompanying statements should be read in conjunction with the audited consolidated financial statements and related notes contained in our Annual Report on Form 10-K. |
The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, for interim financial information. Accordingly, they do not include all of the financial information and footnotes required by U.S. GAAP for complete financial statements. The unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2014, and include all adjustments necessary for the fair presentation of eHealth’s statement of financial position as of March 31, 2015, its results of operations for the three months ended March 31, 2014 and 2015 and its cash flows for the three months ended March 31, 2014 and 2015. All adjustments are of a normal recurring nature. The results for the three months ended March 31, 2015 are not necessarily indicative of the results to be expected for any subsequent period or for the fiscal year ending December 31, 2015. | |
Seasonality | Seasonality—The majority of our individual and family plans are sold in the open enrollment period as defined under the federal Patient Protection and Affordable Care Act and related amendments in the Health Care and Education Reconciliation Act. In the fourth quarter of 2014 and the first quarter of 2015, during the second open enrollment period that began on November 15, 2014 and ended on February 15, 2015, the number of individual and family applications submitted increased compared to periods outside of the open enrollment period. In the fourth quarter of 2013 and first quarter of 2014, there was a significant increase, relative to historical levels, in the number of individual and family applications submitted during the initial open enrollment period, that began on October 1, 2013 and ended on March 31, 2014. |
The majority of Medicare plans are sold in our fourth quarter during the Medicare annual enrollment period, when Medicare-eligible individuals are permitted to change their Medicare Advantage and Medicare Part D prescription drug coverage for the following year. As a result, we generate a significant amount of Medicare plan-related revenue in the fourth quarter of the year resulting from the sale of new Medicare plans. Additionally, historically we recognized a majority of our renewal Medicare Advantage and Medicare Part D prescription drug plan commission revenue in the first quarter of each year as the majority of policies renewed on January 1 of each year. This trend continued and became more pronounced in 2015 due to Centers for Medicare and Medicaid Services ("CMS"), regulations that changed the definition of a plan year from being twelve months from the effective date of a policy to January 1 through December 31 of each year, causing all Medicare Advantage and Medicare Part D prescription drug policies to renew on January 1 of each year. | |
Since a significant portion of our marketing and advertising expenses consists of expenses incurred in search engine advertising at the time a consumer clicks on an advertisement and payments owed to our marketing partners in connection with health insurance applications submitted on our ecommerce platform, those expenses are influenced by seasonal submitted application patterns. As a result of the second open enrollment period for individual and family health insurance that began on November 15, 2014 and ended on February 15, 2015, marketing and advertising expenses increased during the fourth quarter of 2014 and first quarter of 2015, consistent with the increases in submitted applications, compared to periods outside the open enrollment period. In addition, due to the initial open enrollment period for individual and family health insurance that began in October 2013 and ended on March 31, 2014, marketing and advertising expenses increased significantly in the fourth quarter of 2013 and first quarter of 2014, relative to historical levels, and decreased significantly during the second and third quarters of 2014, consistent with the respective increases and decreases in submitted applications. | |
Recently Adopted Accounting Standards | Recent Accounting Pronouncements—In February 2015, the FASB issued Accounting Standards Update No. 2015-02 (ASU 2015-02) "Consolidation (Topic 810): Amendments to the Consolidation Analysis." ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. It is effective for annual reporting periods, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. We are currently in the process of evaluating the impact of the adoption of ASU 2015-02 on our consolidated financial statements. |
In April 2015, the FASB issued Accounting Standards Update No. 2015-05 (ASU 2015-05), "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement." ASU 2015-05 provides guidance to clarify the customer’s accounting for fees paid in a cloud computing arrangement. It is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. We are currently in the process of evaluating the impact of the adoption of ASU 2015-05 on our consolidated financial statements. |
Balance_Sheet_Accounts_Tables
Balance Sheet Accounts (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Balance Sheet Related Disclosures [Abstract] | ||||||||
Schedule Of Cash And Cash Equivalents | As of December 31, 2014 and March 31, 2015, our cash and cash equivalent balances were invested as follows (in thousands): | |||||||
December 31, 2014 | March 31, 2015 | |||||||
Cash | $ | 15,793 | $ | 14,742 | ||||
Money market funds | 35,622 | 24,623 | ||||||
Total cash and cash equivalents | $ | 51,415 | $ | 39,365 | ||||
Schedule Of Accounts Receivable | Accounts Receivable—As of December 31, 2014 and March 31, 2015, our accounts receivable consisted of the following (in thousands): | |||||||
December 31, 2014 | March 31, 2015 | |||||||
Medicare renewal commission receivable | $ | 355 | $ | 12,790 | ||||
Accounts receivable - from other revenues | 2,462 | 1,329 | ||||||
Other commissions receivable | 5,383 | 495 | ||||||
Total accounts receivable | $ | 8,200 | $ | 14,614 | ||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Schedule Of Activity Under The Plans | The following table summarizes activity under our 2014 Equity Incentive Plan, 2006 Equity Incentive Plan, 1998 Stock Plan and 2005 Stock Plan (collectively, the “Stock Plans”) (in thousands): | ||||||||||||
Shares Available for Grant | |||||||||||||
Shares available for grant December 31, 2014 | 4,164 | ||||||||||||
Restricted stock units granted | (200 | ) | |||||||||||
Restricted stock units cancelled (1) | 19 | ||||||||||||
Options cancelled (2) | 9 | ||||||||||||
Shares available for grant March 31, 2015 | 3,992 | ||||||||||||
Schedule Of Stock Option Activity Under Stock Plans | The following table summarizes stock option activity under the Stock Plans (in thousands, except per share amounts and weighted average remaining contractual life data): | ||||||||||||
Number of Stock Options | Weighted Average Exercise Price | Weighted-Average Remaining Contractual Life (years) | Aggregate Intrinsic Value (1) | ||||||||||
Balance outstanding at December 31, 2014 | 1,724 | $ | 18.5 | 3.31 | $ | 12,884 | |||||||
Granted | — | $ | — | ||||||||||
Exercised | — | $ | — | $ | — | ||||||||
Cancelled | (125 | ) | $ | 22.66 | |||||||||
Balance outstanding at March 31, 2015 | 1,599 | $ | 18.17 | 3.12 | $ | 80 | |||||||
Vested and expected to vest at March 31, 2015 | 1,571 | $ | 18.08 | 3.09 | $ | 80 | |||||||
Exercisable at March 31, 2015 | 1,233 | $ | 17.01 | 2.68 | $ | 80 | |||||||
-1 | The aggregate intrinsic value is calculated as the difference between eHealth’s closing stock price as of December 31, 2014 and March 31, 2015 and the exercise price of in-the-money options as of those dates. | ||||||||||||
Schedule Of Restricted Stock Unit Activity Under Stock Plans | The following table summarizes restricted stock unit activity, including performance-based and market-based restricted stock unit activity, under the Stock Plans (in thousands, except per share amounts and weighted average remaining contractual life data): | ||||||||||||
Number of Restricted Stock Units (1) | Weighted-Average Grant Date Fair Value | Weighted-Average Remaining Contractual Life (years) | Aggregate Intrinsic Value (2) | ||||||||||
Balance outstanding as of December 31, 2014 | 873 | $ | 30.86 | 2.52 | $ | 21,753 | |||||||
Granted | 200 | $ | 6.69 | ||||||||||
Vested | (124 | ) | $ | 17.95 | |||||||||
Cancelled | (28 | ) | $ | 30.56 | |||||||||
Balance outstanding as of March 31, 2015 | 921 | $ | 27.37 | 2.93 | $ | 8,642 | |||||||
-1 | Includes certain restricted stock units with both service and performance-based or market-based vesting criteria granted to our executive officers. | ||||||||||||
-2 | The aggregate intrinsic value is calculated as eHealth’s closing stock price as of December 31, 2014 and March 31, 2015 multiplied by the number of restricted stock units outstanding as of December 31, 2014 and March 31, 2015, respectively. | ||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | |||||||||||||
Three Months Ended March 31, | |||||||||||||
2015 | |||||||||||||
Expected term | 2.59 years | ||||||||||||
Expected volatility | 64.7 | % | |||||||||||
Expected dividend yield | — | % | |||||||||||
Risk-free interest rate | 1.13 | % | |||||||||||
Weighted-average fair value | $ | 6.69 | |||||||||||
Schedule Of Stock-Based Compensation Expense | The following table summarizes stock-based compensation expense recorded during the three months ended March 31, 2014 and 2015 (in thousands): | ||||||||||||
Three Months Ended March 31, | |||||||||||||
2014 | 2015 | ||||||||||||
Common stock options | $ | 642 | $ | 462 | |||||||||
Restricted stock units | 1,803 | 1,569 | |||||||||||
Total stock-based compensation expense | $ | 2,445 | $ | 2,031 | |||||||||
The following table summarizes stock-based compensation expense by operating function for the three months ended March 31, 2014 and 2015 (in thousands): | |||||||||||||
Three Months Ended March 31, | |||||||||||||
2014 | 2015 | ||||||||||||
Marketing and advertising | $ | 657 | $ | 591 | |||||||||
Customer care and enrollment | 96 | 117 | |||||||||||
Technology and content | 562 | 435 | |||||||||||
General and administrative | 1,130 | 775 | |||||||||||
Restructuring charges | — | 113 | |||||||||||
Total stock-based compensation expense | $ | 2,445 | $ | 2,031 | |||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Summary Of Provision (Benefit) For Income Taxes And Effective Tax Rate | The following table summarizes our provision for income taxes and our effective tax rates for the three months ended March 31, 2014 and 2015 (in thousands, except effective tax rate): | |||||||
Three Months Ended March 31, | ||||||||
2014 | 2015 | |||||||
Income (loss) before provision for income taxes | $ | (3,149 | ) | $ | (2,026 | ) | ||
Provision (benefit) for income taxes | $ | (1,596 | ) | $ | 56 | |||
Effective tax rate | 50.7 | % | (2.8 | )% |
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Schedule Of Computation Of Basic And Diluted Net Income (Loss) Per Share | The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share amounts): | |||||||
Three Months Ended March 31, | ||||||||
2014 | 2015 | |||||||
Basic and diluted: | ||||||||
Numerator: | ||||||||
Net loss allocated to common stock | $ | (1,553 | ) | $ | (2,082 | ) | ||
Denominator: | ||||||||
Weighted average number of common stock shares outstanding | 18,849 | 17,844 | ||||||
Net loss per share—basic and diluted: | $ | (0.08 | ) | $ | (0.12 | ) | ||
Schedule Of Anti-dilutive Shares Excluded From Computation Of Net Income (Loss) Per Share | The number of outstanding weighted average anti-dilutive shares that were excluded from the computation of diluted net loss per share consisted of the following (in thousands): | |||||||
Three Months Ended March 31, | ||||||||
2014 | 2015 | |||||||
Common stock options | 1,932 | 1,702 | ||||||
Restricted stock units | 745 | 618 | ||||||
Total | 2,677 | 2,320 | ||||||
Geographic_Information_And_Sig1
Geographic Information And Significant Customers (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Schedule Of Long Lived Assets By Geographical Areas | Long-lived assets by geographical area were as follows (in thousands): | |||||||
As of | As of | |||||||
December 31, 2014 | March 31, 2015 | |||||||
United States | $ | 39,752 | $ | 36,885 | ||||
China | 437 | 459 | ||||||
Total | $ | 40,189 | $ | 37,344 | ||||
Schedule Of Revenue By Major Customers | Carriers representing 10% or more of our total revenue in the three months ended March 31, 2014 and 2015 are presented in the table below: | |||||||
Three Months Ended March 31, | ||||||||
2014 | 2015 | |||||||
Humana | 26 | % | 34 | % | ||||
WellPoint (1) | 11 | % | 8 | % | ||||
UnitedHealthcare (2) | 11 | % | 9 | % | ||||
Aetna (3) | 11 | % | 9 | % | ||||
(1)Wellpoint also includes other carriers owned by Wellpoint. | ||||||||
(2)UnitedHealthcare also includes other carriers owned by UnitedHealthcare. | ||||||||
(3)Aetna also includes other carriers owned by Aetna. |
Restructuring_Charges_Tables
Restructuring Charges (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||
Schedule of Restructuring and Related Costs | The following table summarizes the total cash and non-cash restructuring charges recorded during the three months ended March 31, 2015 (in thousands): | |||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||
Employee termination costs | $ | 3,734 | ||||||||||||||
Non-cash employee termination costs - stock-based compensation | 113 | |||||||||||||||
Facility and other termination costs | 636 | |||||||||||||||
Total restructuring charges | $ | 4,483 | ||||||||||||||
The following table summarizes the restructuring charges liability activity during the three months ended March 31, 2015 (in thousands): | ||||||||||||||||
Three Months Ended March 31, 2015 | ||||||||||||||||
Beginning balance | Charges | Payments | Ending balance | |||||||||||||
Employee termination costs | $ | — | $ | 3,734 | $ | (2,567 | ) | $ | 1,167 | |||||||
Facility and other termination costs | — | 636 | (33 | ) | 603 | |||||||||||
Total restructuring liability | $ | — | $ | 4,370 | $ | (2,600 | ) | $ | 1,770 | |||||||
Less: non-current restructuring charges associated with facilities | (334 | ) | ||||||||||||||
Restructuring charges liability - current | $ | 1,436 | ||||||||||||||
Recovered_Sheet1
Summary of Business And Significant Accounting Policies (Narrative) (Details) | Mar. 31, 2015 |
state | |
Accounting Policies [Abstract] | |
Number of states in which the Company is licensed to market and sell health insurance | 50 |
Balance_Sheet_Accounts_Schedul
Balance Sheet Accounts (Schedule Of Cash And Cash Equivalents) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Cash and Cash Equivalents, at Carrying Value [Abstract] | ||||
Cash | $14,742 | $15,793 | ||
Cash Equivalents, at Carrying Value | 24,623 | 35,622 | ||
Total Cash and Cash Equivalents | $39,365 | $51,415 | $98,228 | $107,055 |
Balance_Sheet_Accounts_Schedul1
Balance Sheet Accounts (Schedule Of Accounts Receivable) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | $14,614 | $8,200 |
Medicare Renewal Commissions Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | 12,790 | 355 |
Accounts Receivable, Other Revenues [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | 1,329 | 2,462 |
Other Commissions Receivable [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | $495 | $5,383 |
Stockholders_Equity_Narrative_
Stockholders' Equity (Narrative) (Details) (USD $) | 3 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Total grant date fair value of stock options vested | $0.60 | $0.50 | |
Total fair value of restricted stock units vested | $1.20 | $8.40 | |
Treasury shares held to satisfy tax withholdings | 327,947 | ||
Treasury stock number of shares held | 10,991,835 | 10,945,607 |
Stockholders_Equity_Schedule_O
Stockholders' Equity (Schedule Of Activity Under The Plans) (Details) | 3 Months Ended | |
Mar. 31, 2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for grant, beginning balance | 4,164,000 | |
Restricted stock units granted | -200,000 | |
Restricted stock units cancelled (1) | 19,000 | [1] |
Options cancelled (2) | 9,000 | [2] |
Shares available for grant, ending balance | 3,992,000 | |
2006 Equity Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options cancelled (2) | 116,000 | |
2006 Equity Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock units cancelled (1) | 9,000 | |
[1] | Restricted stock units cancelled does not include 9,000 restricted stock units cancelled under the 2006 Equity Incentive Plan. | |
[2] | Options cancelled does not include 116,000 stock options cancelled under the 2006 Equity Incentive Plan. |
Stockholders_Equity_Schedule_O1
Stockholders' Equity (Schedule Of Option Activity Under Stock Plans) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | ||
Number of Stock Options | ||||
Cancelled | -9,000 | [1] | ||
Common Stock Options [Member] | ||||
Number of Stock Options | ||||
Balance outstanding at December 31, 2014 | 1,724,000 | |||
Granted | 0 | |||
Exercised | 0 | |||
Cancelled | -125,000 | |||
Balance outstanding at March 31, 2015 | 1,599,000 | 1,724,000 | ||
Number of Stock Options Vested and expected to vest at March 31, 2015 | 1,571,000 | |||
Number of Stock Options Exercisable at March 31, 2015 | 1,233,000 | |||
Weighted-Average Exercise Price, balance outstanding at December 31, 2014 | $18.50 | |||
Weighted-Average Exercise Price, Granted | $0 | |||
Weighted-Average Exercise Price, Exercised | $0 | |||
Weighted-Average Exercise Price, Cancelled | $22.66 | |||
Weighted-Average Exercise Price, Balance outstanding at March 31, 2015 | $18.17 | $18.50 | ||
Weighted-Average Exercise Price, Vested and expected to vest at March 31, 2015 | $18.08 | |||
Weighted-Average Exercise Price, Exercisable at March 31, 2015 | $17.01 | |||
Weighted-Average Remaining Contractual Life (years), Balance outstanding at December 31, 2014 | 3 years 1 month 13 days | 3 years 3 months 22 days | ||
Weighted-Average Remaining Contractual Life (years), Balance outstanding at March 31, 2015 | 3 years 1 month 13 days | 3 years 3 months 22 days | ||
Weighted-Average Remaining Contractual Life (years), Vested and expected to vest at March 31, 2015 | 3 years 1 month 3 days | |||
Weighted-Average Remaining Contractual Life (years), Exercisable at March 31, 2015 | 2 years 8 months 5 days | |||
Aggregate Intrinsic Value, Balance outstanding at December 31, 2014 | $12,884 | [2] | ||
Aggregate Intrinsic Value, Exercised | 0 | [2] | ||
Aggregate Intrinsic Value, Balance outstanding at March 31, 2015 | 80 | [2] | 12,884 | [2] |
Aggregate Intrinsic Value, Vested and expected to vest at March 31, 2015 | 80 | [2] | ||
Aggregate Intrinsic Value, Exercisable at March 31, 2015 | $80 | [2] | ||
[1] | Options cancelled does not include 116,000 stock options cancelled under the 2006 Equity Incentive Plan. | |||
[2] | The aggregate intrinsic value is calculated as the difference between eHealth’s closing stock price as of December 31, 2014 and March 31, 2015 and the exercise price of in-the-money options as of those dates. |
Stockholders_Equity_Schedule_O2
Stockholders' Equity (Schedule Of Restricted Stock Unit Activity Under Stock Plans) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 | ||
Number of Restricted Stock Units | ||||
Granted | 200,000 | |||
Cancelled | -19,000 | [1] | ||
Restricted Stock [Member] | ||||
Number of Restricted Stock Units | ||||
Balance outstanding as of December 31, 2014 | 873,000 | [2] | ||
Granted | 200,000 | [2] | ||
Vested | -124,000 | [2] | ||
Cancelled | -28,000 | [2] | ||
Balance outstanding as of March 31, 2015 | 921,000 | [2] | 873,000 | [2] |
Weighted-Average Grant Date Fair Value, Balance outstanding as of December 31, 2014 | $30.86 | |||
Weighted-Average Grant Date Fair Value, Granted | $6.69 | |||
Weighted-Average Grant Date Fair Value, Vested | $17.95 | |||
Weighted-Average Grant Date Fair Value, Cancelled | $30.56 | |||
Weighted-Average Grant Date Fair Value, Balance outstanding as of March 31, 2015 | $27.37 | $30.86 | ||
Weighted-Average Remaining Contractual Life (years), Balance outstanding as of December 31, 2014 | 2 years 11 months 5 days | 2 years 6 months 6 days | ||
Weighted-Average Remaining Contractual Life (years), Balance outstanding as of March 31, 2015 | 2 years 11 months 5 days | 2 years 6 months 6 days | ||
Aggregate Intrinsic Value, Balance outstanding as of December 31, 2014 | $21,753 | [3] | ||
Aggregate Intrinsic Value, Balance outstanding as of March 31, 2015 | $8,642 | [3] | $21,753 | [3] |
[1] | Restricted stock units cancelled does not include 9,000 restricted stock units cancelled under the 2006 Equity Incentive Plan. | |||
[2] | Includes certain restricted stock units with both service and performance-based or market-based vesting criteria granted to our executive officers. | |||
[3] | The aggregate intrinsic value is calculated as eHealth’s closing stock price as of December 31, 2014 and March 31, 2015 multiplied by the number of restricted stock units outstanding as of December 31, 2014 and March 31, 2015, respectively. |
Recovered_Sheet2
Stockholders' Equity (Schedule of Fair Value of Stock Options, Valuation Assumptions) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Equity [Abstract] | |
Expected term | 2 years 7 months 2 days |
Expected volatility | 64.70% |
Expected dividend yield | 0.00% |
Risk-free interest rate | 1.13% |
Weighted-average fair value | $6.69 |
Stockholders_Equity_Schedule_O3
Stockholders' Equity (Schedule Of Stock-Based Compensation Expense) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Common stock options | $462 | $642 |
Restricted stock units | 1,569 | 1,803 |
Total stock-based compensation expense | $2,031 | $2,445 |
Stockholders_Equity_Schedule_O4
Stockholders' Equity (Schedule Of Stock-Based Compensation Expense By Operating Function) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Component Of Stock Based Compensation Expense [Line Items] | ||
Total Stock-Based Compensation Expense | $2,031 | $2,445 |
Marketing and Advertising Expense [Member] | ||
Component Of Stock Based Compensation Expense [Line Items] | ||
Total Stock-Based Compensation Expense | 591 | 657 |
Customer Care And Enrollment Expense [Member] | ||
Component Of Stock Based Compensation Expense [Line Items] | ||
Total Stock-Based Compensation Expense | 117 | 96 |
Technology And Content Expense [Member] | ||
Component Of Stock Based Compensation Expense [Line Items] | ||
Total Stock-Based Compensation Expense | 435 | 562 |
General and Administrative Expense [Member] | ||
Component Of Stock Based Compensation Expense [Line Items] | ||
Total Stock-Based Compensation Expense | 775 | 1,130 |
Restructuring Charges [Member] | ||
Component Of Stock Based Compensation Expense [Line Items] | ||
Total Stock-Based Compensation Expense | $113 | $0 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Income (loss) before provision (benefit) for income taxes | ($2,026,000) | ($3,149,000) |
Income Tax Expense (Benefit) | 56,000 | -1,596,000 |
Effective tax rate | -2.80% | 50.70% |
Increase in additional paid-in capital related to excess federal and state tax benefits | $3,200,000 |
Net_Income_Per_Share_Schedule_
Net Income Per Share (Schedule Oof Computation Of Basic And Diluted Net Income (Loss) Per Share) (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Net income (loss) allocated to common stock | ($2,082) | ($1,553) |
Net weighted average number of common stock shares outstanding | 17,844 | 18,849 |
Net income (loss) per share-basic | ($0.12) | ($0.08) |
Net_Income_Per_Share_Schedule_1
Net Income Per Share (Schedule Of Anti-Dilutive Shares Excluded From Computation Of Net Income Per Share) (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 2,320,000 | 2,677,000 |
Common Stock Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 1,702,000 | 1,932,000 |
Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total | 618,000 | 745,000 |
Geographic_Information_And_Sig2
Geographic Information And Significant Customers (Details) (USD $) | 3 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Concentration Risk [Line Items] | |||
Accounts receivable | 14,614 | 8,200 | |
Commission Revenue [Member] | Major Medical Individual And Family Insurance Plans [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 38.00% | 60.00% | |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Number of significant customers | 2 | 3 | |
Accounts Receivable [Member] | Customer One [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 62.00% | 30.00% | |
Accounts Receivable [Member] | Customer Two [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | 17.00% | |
Accounts Receivable [Member] | Concentration Three [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 14.00% |
Geographic_Information_And_Sig3
Geographic Information And Significant Customers (Schedule Of Long Lived Assets By Geographical Areas) (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Long-lived assets | $37,344 | $40,189 |
UNITED STATES | ||
Long-lived assets | 36,885 | 39,752 |
CHINA | ||
Long-lived assets | $459 | $437 |
Geographic_Information_And_Sig4
Geographic Information And Significant Customers (Schedule Of Revenue By Major Customers) (Details) (Sales [Member]) | 3 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | |||
Humana [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 34.00% | 26.00% | ||
WellPoint [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 8.00% | [1] | 11.00% | [1] |
UnitedHealthcare [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 9.00% | [2] | 11.00% | [2] |
Aetna [Member] | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 9.00% | [3] | 11.00% | [3] |
[1] | Wellpoint also includes other carriers owned by Wellpoint. | |||
[2] | UnitedHealthcare also includes other carriers owned by UnitedHealthcare. | |||
[3] | Aetna also includes other carriers owned by Aetna. |
Restructuring_Charges_Narrativ
Restructuring Charges (Narrative) (Details) (USD $) | 3 Months Ended | 1 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 |
position | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $4,483 | $0 | |
Employee Termination Benefits and Related Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 3,900 | ||
Facility and Other Termination Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $636 | ||
UNITED STATES | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of positions eliminated | 160 | ||
Number of positions eliminated, period percent | 15.00% |
Restructuring_Charges_Restruct
Restructuring Charges (Restructuring Activities) (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $4,483 | $0 |
Employee Termination Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 3,734 | |
Non-cash Employee Termination Costs - Stock-based Compensation [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 113 | |
Facility and Other Termination Costs [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $636 |
Restructuring_Charges_Liabilit
Restructuring Charges (Liability Activities) (Details) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | $0 |
Charges | 4,370,000 |
Payments | -2,600,000 |
Ending balance | 1,770,000 |
Less: non-current restructuring charges associated with facilities | -334,000 |
Restructuring charges liability - current | 1,436,000 |
Employee Termination Costs [Member] | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 0 |
Charges | 3,734,000 |
Payments | -2,567,000 |
Ending balance | 1,167,000 |
Facility and Other Termination Costs [Member] | |
Restructuring Reserve [Roll Forward] | |
Beginning balance | 0 |
Charges | 636,000 |
Payments | -33,000 |
Ending balance | $603,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) | Mar. 10, 2015 |
class_action_lawsuit | |
Commitments and Contingencies Disclosure [Abstract] | |
Number of class action lawsuits filed against Company | 2 |