- Earnings call transcript Q3 2022

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Operator

Good afternoon, everyone, and welcome to the eHealth, Inc. conference call to discuss the company's Third Quarter 2022 Financial Results. At this time, all participants have been placed in listen mode. The floor will be open to your questions following the presentation. It is my pleasure to turn the floor over to Eli Newbrun-Mintz, Senior Investor Relations Manager. ahead. go Please

Eli Newbrun-Mintz

thank quarter And for eHealth, joining Good financial you results. third XXXX Inc's afternoon. all

Joining are prepared Janofsky, Chief open me and line Financial Officer today the Officer. Fran Soistman, After questions. managements for remarks, will Executive we Chief Christine

conference our call. As of on recorded and Relations A our be available replay of website is webcast a call being the the from reminder, Investor will following today's website. section the call

and our and market, events, strategy, our individual market impact trends, that will opportunities, investments strategies and and customer expectations be including guidance. consumer of on initiatives, customer regarding enrollment of conversion, values, statements channels, in our regarding forward-looking regarding and statements investments operations statements to expectations, advantage beliefs, We plan quality enrollment competitive and lifetime future flows, rates, relating and on full expected cash this including conversion current other our financial business, includes and member performance, acquisition fixed plan metrics, the XXXX and expectations our quality savings, operating regarding cost retention, capabilities our our and marketing call Medicare and our these demand, retention market sales operating making omnichannel our center year our financial call expectations profitability estimates market expenses costs, customer and member acquisition the family and including business and

call represent on this as today. Forward-looking views statements of eHealth's

a information, or these forward-looking to We information in You as whether our or undertake as should representing future. in no views rely obligation result otherwise. update future not the duty statements new on contained events of statements, these

other the materially in uncertainties subject to Investor SEC risks to Form Reports and from Relations cause our those in with you and We which our risks our projected statements from could earnings website. describe on through results Annual access that the Quarterly Report and of XX-K website these statements. are XX-Q uncertainties may release, on Forward-looking filed and actual Form or SEC, forward-looking differ the section

presenting this will on measures be also We certain financial non-GAAP call.

a our SEC most directly For in from call Fran and please to of comparable in press included refer now measure section GAAP which measure, will the release the the financial to you information may to turn of our non-GAAP reconciliation website. financial Relations filings, Investor our over Soistman. access I the each

Fran Soistman

Since an Thanks, review on Eli. plan I quarter to important thank for enrollment and the Good afternoon, I as Today, which the about on update prepare we one individual in then, market value new returning third provide season, this November sustainable and market. strategic a and to differentiated long-range to ago we've a assembled profitable plan against of for leadership the critical while changes the delivering month. team beyond. year growth, partners started XXXX comprehensive developed carrier and plan organization proposition started quarter the Medicare at tenure family this we operational a eHealth execution, joining customers. and you earnings execute implemented our additional just my us Significant as for all will October to our company areas call. everyone were and our year began roadmap XX third and for with results 'XX initiatives across the in X

millions Medicare leveraged will plans. individual of success important initial customers for during Our tested this and shop and be when achievements for time

personal for to and assist enroll company enrollment will During an budgets. optimal period, preferences, plans Americans match thousands tens their in this that needs, health and represent of our of shop

beneficiary beneficiaries are when, health the a telephonically, caregivers. through shop through criteria, methods, as enrollment or the provided a served. tablets using options, sales that customers for meets or key This and as guiding plan they complex landscape want and live and digital work Our features product well assisting agents mobile multi-carrier the their personal have teams in host important to chat, method give of planned We devices fully the selection providing navigating their of online how to using critical of performed service most and laptops, be different beneficiaries and unassisted ability including where, tools. enroll computers, environment choice consumers that through a convenient or our

to partners shop, capabilities scale. in enrollments at educate, enroll for shopping savvy. depend and carrier advisers carriers buy, important more like value and beneficiaries our health access with who Our provides eHealth, are comparison particular, technologically eHealth critically also generate insurance on to to omnichannel quality

to relationships never provide to lifelong continue been and partners as establishing the and partnerships memorable of relationships. intention partners eHealth's utmost healthier. our we believe place our our emphasis with strengthened on the with customers with exceptional together carrier carrier have relationships been with throughout have year I last We the work experiences

on in on cost are deliver -- from prior found variable coming quarter, as is than be the XX These and earnings year-over-year $XX cost reductions XXXX. QX operating and outlined as base. earnings now of Improving cost execute well more our our rationalizing During impact our in our track in eHealth the savings are we and expected with can million the continued we've to fixed structure cost which to largest element savings important plan presentation. the on against plan of slide calls an that six-point

to profitability program and to on a foundation. reduction our stronger will cash us allow addition much underway flow In profile this year, enter cost XXXX also improving the

to that began early the and you the will we cost cost the April. transformation The execution expect impact be As supplemented of new annualized year. in part XXXX, full on realized eliminations in recall, additional execute in reductions by

wide outlining important expectations. month, passion are It degree eHealth's range a find the caregivers helping determination when comprised have Chief Information team we ethics making flow past of statements of limited while believe and success and expect is affordable leadership and coverage. high-quality our company quality, dedicated and is plan, of leadership significant towards the team they our reconstituting entire I clearly work shopping beneficiaries shareholders' Officer, Board operating Americans Michelle we to from promoted of reductions. our leadership easy-to-use People Security. transformation the Chief important pledge, most guidance and commitment profitability eliminations Brown. covering as health the the team integrity. recently Medicare to signed to and mission an six aligned providing that In always work of announcing Internally, our of and exceeding the is customers acting Jana our satisfaction and Engineering new appointment cash Bill can with The insurance is is group insurance affordable assembling changes cost Officer, on operating not expert with year, well The customer connecting enhancing fully top offering to to made behind part Last truly in have plans enrollment as lead While executives our and a cost and President we team, of leadership our special of Barbeau; of this Marketing they around process, and to our our and goals strategic friendly, and criteria Billings eHealth mission of recommendations broader of to Senior health eHealth. plan coverage everything to experience, highest near our and experience planned our Vice a is completion the the a with

year-over-year our all Operationally, on and critical conversion from a new in websites. quarter example of get is through with the memorable to of in significantly partners, of Medicare rest telesales number eHealth, are enrollment for provide only more our we experiences increase plans. third carrier and have consequential This of insurance another year. AEP, determine compared Medicare that the also organization the to This rates with as important acquisition most of given the the shared key improvements larger calls The customers shop year-over-year and been member proudly enrollment a As cost, of of an even pledge profitability. per that incoming exceptional metric but our first displayed drivers impacts has effectiveness organization sales to step-up the CMS calls. one not of strives conversion where the rate the enrollment the weeks continued conversion the volumes, one they and is health was achievement of

We our as seeing for agent AEP. well this this for hired year-over-year tenured productivity improvement newly as are the agents

the enrollment of a significant our performance. reminder, quality impacted a which included telephonic our financial a introduction and ago, year resulted verifications, about our conversion rates initiatives As reduction in call of

as carriers, months, the have right CTM significantly volume XX standing us with enrollment enrollment result to scores of now we had some It in While was the which the to initiatives, quality better sacrifice quality. our refers eHealth achieve major to it allowed past these of as gold improved decision. standard and over a

in year-over-year while decreased to of enhanced QX Medicare increase We and was $XX.X lead that EBITDA million XXXX. to revenue rates. Adjusted by a effectiveness see enhanced compared and line last to QX are conversions of reflecting our to costs was were revenue offset excited quality variable XX% Both with which improved a accomplished in $XX.X in year, in compared XX% year-over-year, marketing reduction of maintaining loss plan. conversion reduced contributed loss acquisition adjusted $XX.X standards. in partially EBITDA million volume, a million internal QX enrollment

on the our continue AEP provided consumer made this marketing customer year-over-year, we marketing ranges call. meaningful driving prior AEP, In analytics. At ROI AEP, initial we Medicare are from based cost to new and expansion drive learnings we on to LTV preparation and member CAC budgets quarter full specific focused and XXXX our of a days the the based and higher processing, that quarter's in data and improved agent we and year even funnel, to enrollments Third periods. marketing expect top the and per spread. for observations, associated last and stronger pronounced on be with response results implemented acquired QX and changes Based times segments on reaffirming more guidance we sales enrollment in on channel trend strategies

be we into notice, the our through AEP. progress that portions are campaigns on We opportunistic top-performing to shifted of with be budget the as prepared and shorter initiatives can leading

and last aggregator As I including partners, we markets, we end nature budget on marketing channels the allocated lead did our our you with In the historic test we in some dynamic a reevaluate pull for percentage channels, call, of quarter. as planned recognition with the these of of every some shared from small programs of DIRECTV new our XXXX. to test to of back areas

agent interactions fits our to the past their starting preserve the specific aim an investments has us is One easier valuable and platform beneficiaries customers. live marketing channels goal the progress augment We to member conversion to increase to it eHealth's allowing core are enrollment spend, total associated to assistance quarters, provide shopping of number move with available without made year consistent supplement volume this our to model. agent the of we a into enrollment enrollment rates co-browsing arrangements our options platform process carrier the preferences, the online customers including for is This to important from of drive chat and generation a a remain budget. we of the that our dedicated to further made In fluid, overarching introduction our an top acquisition a through in-person funnel. lead as degree lead in they becoming differentiator capabilities of across and with strategy. want. The of to to experience omnichannel key and eHealth business way shopping enrollment

have is to to of key remaining any For all online, final the might with complete in and the submission or conversion call the a overall the the their to is consider our progresses a options and of enrollment co-browsing they how talk enrollments. platforms, family they beneficiaries goal for answer can session demand to then agent questions and example, Again, increase on process licensed the begin regardless made. plan

mix you a might As hybrid online a result, category. of new the shift see assisted enrollments into

rates. following path tools. conversion specialization of expect year, took of call round goal AEP, the type, and the value-added and model carrier beneficiaries, we center carrier compared the we for of driving Medicare steps composed services loyalty. made co-browsing dedicated through the sales ancillary strategies channel represents increasing AEP. prepare for tenure of plan season are Compared reengineered we We included performance by full-time, The and omnichannel year the with significant of our platform. the and year our to average career best-performing omnichannel dedicated and launched selling retain pipeline marketing meaningfully which our impact a creating intent and the And market focused summary, having post-utilization to and optimization shopping year-over-year agent that We first of the new telesales professionals. already These rates agent reduced partner year plan our and fleet to predominantly strategies we to high the in processes. preset local increased this to on region agent the chat to while partners. we In year, increase agents customer members meaningful needs. past in the last with of past introduction technology providing enrollment telesales, agent carrier productivity conversion on entered recruiting and with a arrangements attractive agent our This the in-house sales improving LTC operations, stronger training processes, Outside made and is over a including AEP. facing of new telephonic pools, and and ago, reengineering to which acquisition hiring channels return appointments products mix, expansion our agent on enhancements marketing Over overall we changes fostering to increasing our lead costs introduced and engine improvements our increase a our we optimizing to training are on positive agent

stronger generation costs time Our lower being combined campaign same to telephonic with year that compared the per member are driving demand a enrollments made targeted significantly at ago. conversions are acquisition

of some to-date stages it's pleased coverage. reflection the early the Coverage a for and we Arrangement, over still gain improvements put performance plan and significant scale of to to segment, follow our and the are in cautiously allows optimistic Reimbursement to we inflation about it financial time awareness remain of benefit business ICHRA enrollment to their provides affordable with IFT their premiums operational with typically believe past the an individual big be [Technical are for stands ICHRA that quarter Individual which small continues programs we reduce AEP, While in and provides the place the year. insurance workforce the employers exposure will in fourth the growing we the health In a employers family ICHRA benefactor to leading be alternative In as believe health opportunity. same number ICHRA, an will their Health affordability new The a take fund though, insurance at inflation employees likely partnerships, in broader of opportunity We path. insurance open launched health a do country, as the for period, greater including of preparation market. Difficulty] administrators have ICHRA driver of

will on broader as our our AEP inform making marketing has the a The organization Looking this performance our first important organizations sustainable underwent of eHealth back we've decisions tremendous am step satisfied for a made made progress growth. have XXXX. eHealth, we my at profitable are change. with positive I a already and impact believe are path improvements year significant sector and amount positive at and sales towards to operational

We after quarter finalizing plans and part the years will of earnings shortly provide our be conclusion AEP XXXX to guidance plan release. next fourth as

-- opportunity also hold we to conviction with large We and a QX tools Advantage I the I or when I nationwide, short-term Janofsky, will to mission in between. Day additional turn unique some Above to and ability be to in selection online plan market our are a provides would CFO, Investor enroll license With anywhere Medicare and beneficiaries growing early plans favorable Advantage through demographic to plan call all, in more financials. offering unassisted by sharing my we'll Medicare like trends for we advisory be Christine to on value that, a the an to along color eHealth's with report eHealth pursuing. XXXX, and and believe broad stress the continues earnings. and our Christine? details

Christine Janofsky

Thank you, afternoon, Fran and everyone. good

costs pursuant Medicare improvement reduction a with member in in plan our quarter transformation results agent significant productivity. cost a reflect third acquisition Our combined to

spend the segment ago, that Medicare XX%. similar variable year enrollment third in acquisition while compared by During to a reducing we generated volume quarter, quarter

Medicare $XX.X commission revenue X% Third X% QX, million, down XXXX. Medicare down year-over-year. $XX.X quarter was was revenue million, from

we in quarter, some cash revenue older or trends adjustments recognized tail our collection reflective the our During member positive of Medicare of positive on $X.X of business, million cohorts.

revenue year-over-year historic mix ago. impact. compared membership Total enrollment driven deployment third and turn as in spend We our Sup an Medicare and leads. a estimated basis, a approved loss quarter $XXX,XXX and shifts in of of third Advantage Part by reflecting non-commission increase a order million approved QX was of Advantage third $X.X impact reflecting relative our enrollment, to and Medicare carrier increase Medicare and the were year-over-year the segment total estimated membership Supplement flat a including marketing $XXX,XXX, consumer conversion million million favoring compared demand, of $XXX, Medicare more loss quarter was transformation on of down or MA ago, in quarter X%. XX,XXX, was organization. an comprised which Medicare X% year third year-over-year program Third LTV targeted of was observations predominantly and a represents of Part members product, as of revenue. year-over-year rates $XX Total X% Med growth increased Medicare D a X% MAPD year-over-year to secular the quarter, enrollment our year to cost is of D paying well cohort $XX.X XX,XXX, decline advertising on approximately for approximately with ended on MA are our of were a telesales XXXX. Medicare The decline or MA Medicare in stable X%. product

we the yet campaigns the and by productive through quarter. in member AEP. who in marketing our train in invest time, member acquisition is to during early elevated per are per preparation And agents acquisition fully quarter our for year-over-year hire third the and typically of also a decline as characterized transformation marketing the seasonally costs operations same program, The XX% At in sales not resulted improvement costs.

AEP, enter we compared as drop this a Medicare rates we our As acquisition spread pick conversion year, and to in LTV QX meaningful and of to tax up. favorable the per a see to approved demand cost expect member

$XX.X on invest online quarter continue $X.X Small year-over-year with unassisted on XX%, applications in Advantage million respectively million and and $XX.X to segment compared basis was in revenue omnichannel this in $XX revenue million Medicare QX tools mostly million and and grew compared segment assisted year, XXXX. profitability revenue, $X.X is partially decline in to this QX Individual, profit lower to in applications as XXXX. platform. a $X.X positive Third tail revenue QX Family segment grew year-over-year million Business XX% was to of we submitted segment tail million, The attributable our of in

XX% retention was trends of XX% favorable QX Total XXXX. of We in XXXX. EBITDA million grew down GAAP $XX.X $XX.X $XX.X in million continue $XX.X XXXX loss compared and our Adjusted million this X% was million, negative QHP value loss $XX revenue to a business. for QX growing year-over-year. year-over-year. QX LTVs QX IFP loss decline after net of double-digits in to QX a million, observe our in of in year. to compared was product for non-QHP were Lifetime plans of

advertising a in operating decrease was a expense $XX.X decrease in total driven marketing operating or of of the In QX from and $XXX.X was XX% XX% million and million XXXX. in QX by GAAP and to million XXXX. were $XXX expense spend The GAAP of expenses. expense XX% total GAAP from $XX down quarter, third total CC&E Moving decrease now million, our in

GAAP year in is side, increased and due cost Last while former tech X% to year-over-year, compensation higher year a a primarily credit prior ago. expense. our of increase who reversal by positively X% year-over-year G&A to fixed to declined the related costs stock GAAP CEO, G&A impacted ago. comp year, QX The was stock-based content stock-based spend departed $X.X compared On a a to grant a million

our and primarily the related part time. Santa $X.X Third a a impairment. subleasing our we non-cash of we announced recognition expected sublease Clara office also of to of to quarter to operating agreements over positive million costs lease leading charge a fixed Santa earlier as this property the remote the signed Clara cost first structure include our The impact have on is year strategy on

saw cost year, For total in These now the in will million and of to towards full excess relative are savings be weighted XXXX. spend variable targeting we have $XX cash, of in the you debt. will QX the savings ended terms million with $XXX quarter highest cash fourth equivalents in and the approximately absolute and amount $XX dollar securities, in quarter. marketable in impact We million as

over net cash collect million improvement the second These used results in to year-to-date operational reflects make Our compared negative a in was for operating Medicare which implemented we a the Trailing that million. improvement of September program that nine year-over-year million, long-term or a $XX negative cash X% $XXX receivable over months the to represent million, commissions XXXX, of we quarter million commission months improvements commissions to $XXX improvements million an $X.X year XX of than use $XX.X a months, $XX more further of transformation coming improvements, $XXX.X past XX-month cash of initial our believe million of and the XXXX, balance for balance XX, expect increase the of million. activities in and approximately $XX can a nine an year On cash in the $XX.X ago. quarters. Operating first significant $XXX was compares of cost year, were used comprised collections represents also compared and sheet receivable. basis, million, for next ago. million is This flow cash we ended the to

year the The organizations our XXXX in telesales am last last and positive of quarter. initial encouraged enrollment the are be metrics can gave AEP. efficiency reaffirming guidance, marketing we execution I first seen we in full a the our in and In XXXX by are year execute the drive to the is of to to trajectory open the for over the that, the the and related operator towards we of we made to up have clearly cost increasing Turning to line we ranges near the the weeks it made continuing over positioned investors. our our for progress have longer turn and sign questions. With business transformational operations while I'll the summary, well plan, both to term. towards back against commitments our

Operator

Instructions] [Operator Tobey first you. Securities. Thank our come Truist And Sommer of will from question

Your line open. is

Tobey Sommer

down as as – Thank bit you and in wondering some marketing We've well you. spend be love the more everything for if heard – both market I to that competition you your players sort you. business pricing have perspective. was – could give appetite and Thank ? that of from seems the us a would rational perspective own from with a other out somewhat

Fran Soistman

of new through board managing Tobey. you. looking will the to three-plus AEP. the every hear and at team But Hi, of competitive. first good least that weeks. day really for brought to It's that managing possible. eHealth the attack. that done perspective, would as from in adventure. the I as here what to Nice is predict effectively attribute job It's weeks good And happen on channels continue things again, say would a question, hard in I Thanks our in That at half remaining said, has we leadership a environment the be as four from describe course. to the I the the

all rational So relative. is

their, how they're marketing there. all their think organization irrational rational, remain if on if it performing objectives, they I depends consistent relative it may and goals start and each own does let's goals probably things. do And is with not objectives. And performing to they're So

all Xth. plays December So see through how it let's out

Tobey Sommer

Sure.

of the to market. of the prices in and market kind that's from focal excellent out dig So expectations but business, change? [Technical And nor plan have know Difficulty] our that of out into the the the in growth, preponderance perspective, for that were I pricing point selling not maybe leads a for those

Fran Soistman

you the the end. again, Can say You of broke please? at last part up question your

Tobey Sommer

or Yeah. them talk not. expectations that If to competitor's need of understanding and around may or up pricing particular distill we kind whether then and any specifically, plans, about in living they're for it get not

Fran Soistman

It's doing, We close that -- let's a obviously just to what have on the say extent very competitors are our we that keep eye this. visibility.

a different. are little channels Our

have very online robust a We capability.

don't capability. competitors Our that same necessarily have

search marketing. We our searching channel, So we and do search of do paid our activity. online more more optimization, engine

on it's relative in is a hard what we're little it's But what mail, ours satisfied there, we where But as different last than would direct really what spending, they a be satisfied with are get spending were again, time So that strategy where visibility we're year. the to We're to-date. I may we're say time. to spending. point to we this

another up, We're And less the get XX -- to in we through got can't don't don't it's so AEP. we get we we down. just -- November days and Xth,

tomorrow. answer different a be could So

that's think today. we where are I So

Tobey Sommer

Okay.

flow that Day I You big in to next And know get you the sort so, we also and is year. receivables or company speak position over Investor harvestable talk cited to the you have equation. in a XXXX. as -- an XX into next scheduling the the variable months AEP early cash of Could referenced of the

that extent can be the So comment would to you which helpful. on

Fran Soistman

company it's this unfold year we and even early to range more continue Sure. to time was I'll perspective. Christine flow Christine, bit pleased little a how the and ask let where continue From level, say, quarter, we where we very between would as the talk a cash schedule a take the see we're about cash objectives flow, a at share a company Investor now a we're Day, much second for first business Investor multi-dimensional to there, and will than from evolve Day insight quarter. the in our more share longer analysts, that the and about of leadership strategic organization and course, this is provide team to we are to that investors wants to bit she I'll today if when late I to it the want with goal very and general Cash our and present more flow. little to ago, going different really more.

Christine Janofsky

you you, to Fran, and Thank Sure. to talk nice again Tobey.

of As management one our XXXX burn. team, And increased we've guidance certainly being about plan is you XXXX by that's of flow our positive think cash impact reduce also, outflows about basis XXXX. cost the our we critical efforts and that by to we as $XX and a our basis as in talked flows been our part be variable And on goals ranges is year-to-date compared to And XXXX we improving at results really think about, we operating QX, fixed as for quarters those talked for through three call, QX, both to about then on cash on our and the the million. revised will lower earnings we cash we're cash revised this cost our then operating as QX from that side. seeing heading the first $XX million initial into significantly a flow of

Tobey Sommer

much. Okay. you Thank very

Operator

Thank file next you. moment our please for One question.

Bank. George come question next Hill of will from Deutsche Our

Your line open. is

George Hill

wanted on. kind Hey two and taking good have just thanks guys, to evening for touch of questions. I the topics I

I rules if for changes advanced AEP. don't in CMS the about you any? call rules, created advanced creates I has has the market always have that from know the if So, been any what mean, recording for CMS calls, workflow? you talk marketing your know changes guys implemented implementing year's business, but guess, you the I I center guys, I'm recording can is first the changes sorry, have you this

Fran Soistman

us there -- continue hasn't is requirement Hi, we to for was for resulted say sales to mean, area. with of all their of within directing grateful certainly quality required a -- to nuance requirement hasn't as but us this it's changed really a beneficiary important organizations calls plans don't disclaimer in any And that as that within to for far XX for first one third-party And seconds our we've call, offer the CMS. share is us. for the marketing we The actually geographic George, recorded, were issues thanks It anything always beneficiaries of agents. call us. it advance would really I proficiency to It's that protection. question. I critically year

are -- they rates last were our we than So higher year. conversion

robust. is telesales Our

qualities doing our we're are and just So as well. high very fine call

no on So side. nothing concerns -- CMS the

George Hill

the that then follow-up but concern changes the for TV been could margin, I of bunch little drive likely margin. guess, -- of which to good market that is guess ads season, down is, would I there's with also I churn guys, marketing And combined you be my at for this in a would the assume bit at Okay. selling the growth a is slow

impact of I guess with it, weeks maybe macro I see that to level you we market just anything in do specific? only know So help couple of opposed the would anything a I see kind we're could ask. as a from

Fran Soistman

-- eligible the as CMS probably commercial Look, at B advertising very broader they concerned think they only and utilize. is And quite about have is the celebrities but beneficiaries us much rebate. XX Part are churn so post were number what that. I Well, year, Gap] one has top it this or meaning who any available limited And think aimed of change they I messaging reducing increasing easily they're of And TV you're that's is of any have They carriers to persistency. a can kind country, to over-promoted the after of some misinterpreted. organization DIRECTV good they to that industry impact and referring as geographic way I CMS to the And really for commercials been review the really to think what those doesn't because not XX-day that new got some the credit TV wants [Audio others. might thing. create be bit, It's that promote impact were for been priorities, we're in think the churn, areas debt the utilizing a down I good on that days it for the process approval past, might CMS a use, marketing featured in our to promoted. filing not organization be

are So a reflection that a the supportive way of that there make all communications CMS is done we're sure very to efforts good industry. in on

George Hill

I you. appreciate Thank the Okay. color.

Operator

Thank next you. our for question. moment One

will of question RBC come from next Capital Our Markets. Hendrix Ben

is line open. Your

Ben Hendrix

for accruing? makes AEP. there if was XQ. wanted It seeing how -- manifesting on wondering question kind more here mix I accrue in on I that, much. enrollment, just that's how of color that's bit quick sense savings the weeks But a early of little question a very us color you on this and variable a of in you quick online penetration terms costs to Thanks. We're could year. both some the increased of million cost $XX to example, Thank an the give were in just more assisted unassisted mostly

Fran Soistman

at for cost been a activity. this to for opportunities conversation. into area initiatives. it join and when cost Thanks Ben. transformation first this across been Hi, savings, the have since we've there's launched balance of April, in question. me certainly I'm And of that already our ask year activities still that's going the Christine part to our the The identified wide cost we transformation more XXXX. But we've of

They're and are in cost and terms be organization our customers So, efficiencies what mean certainly partners. they in and our the at disruptive ways really to they carrier well for as that minimally and as executed these mean what of opportunities. aimed for intended fixed efficiencies are variable

on and to don't We assisted all we've perhaps it even chat bias unassisted, to we by in other. So as taken towards far objectives. in objective opportunities unassisted online, our as our live fact, channels over introducing want look here is agent one support at the favor changes. that was have the -- unproductive ability past, meet levels as the to equal they in the We're to by they having the chat an chat and were capability, those improve the throughput the click now before help and people And it, capability. completed assist funnel of having sales. converted didn't top to live a they're for on our transaction, before, because here the now now by actually live agent It’s growth customers was completing met. And new weren't right, be can that we to where the because

intend a so lifetime. increases the philosophy it. a We -- to goal. in It keep So the if costs customer it's we for a just different the That's that be it acquisition results customer and incrementally, now.

eHealth different think add be the top that other cycle. there's platform, The to as ways there's much a to for as source today. We throughput. value to you lifetime a opportunity the in create on efficiency anything want want of for chat, cost philosophy funnel it's live Christine, that efficiency. throughput we of introducing for as greater So the possible by

Christine Janofsky

a it, covered of you think I Fran. lot

a I'll things that mention. there's couple I think of

think we cost As transformation looking the both costs, we're fix. about and at all variable

basis we at the And that we entering right side, both and from that And side spend did structure mainly the the certainly portion the Santa On largest cost channels we lease. the to on of right one on cost basis. sure variable, us on headcount in expenses XXXX match then then right the better to looking the focus. And Clara was variable and certainly, to our XXXX. making in areas be additional starting And fixed that marketing cost really a focusing are then ROI our of we're that things hone of to all the into the lower in of corresponding on going look play. that this as agent will a than reduction provide that at right fixed side, opportunities on for that that having reduction and year. on have continuing we well, the what mentioned as continue fixed year-over-year at are really

a people well expenses. costs did an something, one from fixed we'll other we continue to office have our we a And that sublease on that area strategy look as opportunities at spaces. that So is is remote that of side first as as

Ben Hendrix

Thanks for the color, guys.

Operator

question. next Thank you. And one moment for our

Grosslight come Citi. Daniel Our of next will from question

is line open. Your

Daniel Grosslight

the for Thanks Hi. question. taking

noted which is may older more to churn competitors your that your recapture for and those if differential, I'm to leading platform this one, off And AEP, in that planned approved then cohorts AEP. the same thing you're seniors? seeing two, shopping. of MA of mean policies more you One ability your there's of what in curious,

Fran Soistman

the part I reduce on or it's general, supplemental the because in Hi have to it refer have Daniel, who in greater question. they thanks would so just Americans coinsurance, in greater just original on deductibles, focus an inflation don't there's I'd are there's can -- a much financial and who and entirely or and provide have today, wouldn't that think have greater planned a supplemental Advantage for does by in core Medicare a economic $X premium. subjected the right, value know differential they're an being who Medicare whether shopping where felt as in with for about Medicare supplemental proposition, to of with but -- with because an say value because, that the the it if more that plan Advantage those large proposition is I are protection or plans, Medicare XX% I monthly Medicare Medicare those plan MA -- exposure original original fixed pressure income, in America also

people as carriers well. the right, options to result switching in switching beneficiaries with switch same be geography, they also because about concern there and there's relationship know I carrier in carrier, necessarily offer So, staying the that and same with multiple the people but plan could could be switching, the having doesn't

So, I high foremost, that premium, particularly perspective just from paying original they're alternative, higher a a that and some Medicare with considering first supplemental Medicare in income and because by with provide want those there now oftentimes to a Advantage with can a gain lot those fixed protection even inflation. challenging, be frequently Medicare month of pretty

your beneficiaries it's value really is but American original about So think, just a differential, today. to back proposition point attractive very, very I -- for

Daniel Grosslight

sense. Makes Yes.

translate extended but if growth segment, you curious, ISP subsidies, I'm just into I ISP And you're ACA next. faster will qualified the then over index Act provide the inflation I'm know XXXX. the brands, not year that to to this subsidies on Okay. Reduction think the and curious,

Fran Soistman

more be it's growth. now. necessarily accelerated call would think it going That's don't our right to moderate I growth. thinking I

Daniel Grosslight

it. Got Thank you.

Operator

Q&A the end the Fran remarks. like will portion this now And of for I turn to you. back conference Thank closing to conference. the would Soistman

Fran Soistman

you. -- us all thank and thank afternoon. Well, much joining Thanks this operator, for your thank for you, very you

Operator

call. you conference all today's participating. Thank conclude will for This

a disconnect day. You pleasant and may now have

eHealth (EHTH) 8 Nov 222022 Q3 Earnings call transcript