- Assisting people in finding a suitable Medicare plan is the core business of eHealth, but has been unprofitable due to high customer acquisition cost and uncertain customer lifetime values.
- The sector on the whole has failed to deliver value to shareholders over the last 12 months, with the three major firms losing roughly 90% of their respective market caps.
- eHealth's assets are dominated by long-term commissions receivable; this is not straight-forward to value in terms of the time value discount and the reliability of the receivables.
For further details see:
eHealth: Wrestling With The Balance Sheet And Costs