eHealth Inc

Previous wording

Beginning in the first quarter of 2024, primarily as a result of vacating excess office space, we modified our methodology used in allocating certain expenses for the purpose of evaluating financial and segment performance and resource allocation. Specifically, we no longer allocate our facilities-related expenses, and as a result, these costs are now reported within the “General and administrative” line in our Condensed Consolidated Statements of Comprehensive Loss and within Corporate for our segment profit (loss). We have recast the Condensed Consolidated Statements of Comprehensive Loss and our segment profit (loss) for the prior period presented to conform to our current methodology. This resulted in a classification change of expenses from marketing and advertising, customer care and enrollment, and technology and content into general and administrative. Additionally, our segment profit (loss) no longer includes our facilities allocation to each of our segments and instead, these costs are included within Corporate. There was no impact to total operating costs and expenses, loss from operations, net loss or net loss per share attributable to common stockholders on our Condensed Consolidated Statements of Comprehensive Loss.

Current wording

Beginning in the first quarter of 2024, primarily as a result of vacating excess office space, we modified our methodology used in allocating certain expenses for the purpose of evaluating financial and segment performance and resource allocation. Specifically, we no longer allocate our facilities-related expenses, and as a result, these costs are now reported within the “General and administrative” line in our Condensed Consolidated Statements of Comprehensive Loss and within Corporate for our segment profit (loss). We have recast the Condensed Consolidated Statements of Comprehensive Loss and our segment profit (loss) for the prior periods presented to conform to our current methodology. This resulted in a classification change of expenses from marketing and advertising, customer care and enrollment, and technology and content into general and administrative. Additionally, our segment profit (loss) no longer includes our facilities allocation to each of our segments and instead, these costs are included within Corporate. There was no impact to total operating costs and expenses, loss from operations, net loss or net loss per share attributable to common stockholders on our Condensed Consolidated Statements of Comprehensive Loss.

Previous wording

Approved members represent the number of individuals on submitted applications that were approved by the relevant insurance carrier for the identified product during the current period. The applications may be submitted in either the current period or prior periods. Not all approved members ultimately become paying members.

Current wording

Approved members represent the number of individuals on submitted applications that were approved by the relevant insurance carrier for the identified product during the current period for which we are the broker of record. The applications may be submitted in either the current period or prior periods. Not all approved members ultimately become paying members.

Previous wording

Three Months Ended March 31, 2024 and 2023 – Total approved members grew 1% during the three months ended March 31, 2024 compared to the same period in 2023, driven by:

Current wording

Three Months Ended June 30, 2024 and 2023 – Total approved members declined 7% during the three months ended June 30, 2024 compared to the same period in 2023, driven by:

Previous wording

•a 16% decline in ancillary approved members due to declines in approved members across all ancillary insurance products that are typically cross-sold with new individual and family plan enrollments.

Current wording

•a 15% decline in ancillary approved members due to declines in approved members across all ancillary insurance products that are typically cross-sold with new individual and family plan enrollments; and

Previous wording

•partially offset by a 29% and 15% decline in individual and family plan and small business health insurance approved members, respectively, primarily due to a decrease in volume as we focus on implementing operational enhancements with a plan to resume enrollment growth in our E&I segment in the fourth quarter; and

Current wording

•a 53% and 18% decline in small business health insurance and individual and family plan approved members, respectively, primarily due to a decrease in volume as we focus on implementing operational enhancements with a plan to resume enrollment growth in our E&I segment in the fourth quarter of 2024.

Previous wording

•a 10% growth in Medicare approved members, primarily due to an increased number of benefit advisors and increased variable marketing spend year-over-year, specifically contributing to a 9% increase in Medicare Advantage approved members;

Current wording

◦an increased number of benefit advisors and increased variable marketing spend year-over-year, specifically contributing to an 8% increase in both Medicare Advantage and Medicare Supplement approved members,

Previous wording

(2)The constraints applied to the total estimated lifetime commissions we expect to receive for selling the plan after the carrier approves an application in order to derive the constrained LTV of commissions for approved members recognized were 7%, 9% and 7% for Medicare Advantage, Medicare Supplement and Medicare Part D, respectively, for the three months ended March 31, 2024 and 2023.

Current wording

(2)The constraints applied to the total estimated lifetime commissions we expect to receive for selling the plan after the carrier approves an application in order to derive the constrained LTV of commissions for approved members recognized for Medicare Advantage, Medicare Supplement and Medicare Part D were 5.5%, 9% and 7%, respectively, for the three months ended June 30, 2024 and 7%, 9% and 7%, respectively, for the three months ended June 30, 2023.

Previous wording

Three Months Ended March 31, 2024 and 2023- The changes in constrained LTV of commissions per approved member consisted of:

Current wording

Three Months Ended June 30, 2024 and 2023- The changes in constrained LTV of commissions per approved member primarily consisted of:

Previous wording

•a 9% increase in Medicare Supplement plans, primarily due to an improved ratio of approved members who became paying members and favorable retention, partially offset by unfavorable carrier and contract mix;

Current wording

•a 27% increase in Medicare Supplement plans, primarily due to favorable carrier and contract mix and favorable retention;

Previous wording

•a 17% increase in Medicare Part D plans, primarily driven by favorable commission rates and improved retention;

Current wording

•a 3% decrease in Medicare Part D plans, primarily driven by unfavorable carrier and contract mix, partially offset by improved retention;

Previous wording

•a 4% increase in qualified plans, primarily driven by favorable carrier and contract mix, partially offset by unfavorable retention trends;

Current wording

•a 7% increase in non-qualified health plans, primarily driven by favorable carrier and contract mix, partially offset by unfavorable retention;

Previous wording

•a 13% and 20% increase in dental and vision plans, respectively, primarily driven by favorable carrier and contract mix; and

Current wording

•a 24%, 15% and 7% increase in dental, vision and short-term plans, respectively, primarily driven by favorable carrier and contract mix; and

Previous wording

•an 8% decrease in small business plans, primarily due to unfavorable contract rates.

Current wording

•a 10% increase in small business plans, primarily due to favorable contract rates.

Previous wording

After we have estimated membership for a period, we may receive information from health insurance carriers that would have impacted the estimate if we had received the information prior to the date of estimation. We may receive commission payments or other information that indicates that a member who was not included in our estimates for a prior period was in fact an active member at that time, or that a member who was included in our estimates was in fact not an active member of ours. For instance, we reconcile information carriers provide to us and may determine that we were not historically paid commissions owed to us, which would cause us to have underestimated membership. Conversely, carriers may require us to return commission payments paid in a prior period due to policy cancellations for members we previously estimated as being active. We do not update our estimated membership numbers reported in previous periods. Instead, we reflect updated information regarding our historical membership in the membership estimate for the current period. If we experience a significant variance in historical membership as compared to our initial estimates, while we keep the prior period data consistent with previously reported amounts, we may provide the updated information in other communications or disclosures. As a result of the delay in our receipt of information from insurance carriers, actual trends in our membership are most discernible over periods longer than from one quarter to the next, making it difficult for us to determine with any certainty the impact of current conditions on our membership retention. Various circumstances could cause the assumptions and estimates that we make in connection with estimating our membership to be inaccurate, which would cause our membership estimates to be inaccurate.

Current wording

After we have estimated membership for a period, we may receive information from health insurance carriers that would have impacted the estimate if we had received the information prior to the date of estimation. We may receive commission payments or other information that indicates that a member who was not included in our estimates for a prior period was in fact an active member at that time, or that a member who was included in our estimates was in fact not an active member of ours. For instance, we reconcile information carriers provide to us and may determine that we were not historically paid commissions owed to us, which would cause us to have underestimated membership. Conversely, carriers may require us to return commission payments paid in a prior period due to policy cancellations for members we previously estimated as being active. We do not update our estimated membership numbers reported in previous periods. Instead, we reflect updated information regarding our historical membership in the membership estimate for the current period. If we experience a significant variance in historical membership as compared to our initial estimates, while we keep the prior period data consistent with previously reported amounts, we may provide the updated information in other communications or disclosures. As a result of the delay in our receipt of information from insurance carriers, actual trends in our membership are most discernible over periods longer than from one quarter to the next, making it difficult for us to determine with any certainty the impact of current conditions on our membership retention. Various circumstances could cause the

Previous wording

cancellations over the period being estimated); and (ii) the number of approved members over that period (after reducing that number using historical experience for an assumed number of members who do not accept their approved policy and for estimated member cancellations through the date of the estimate). To the extent we determine through confirmations from a health insurance carrier that a commission payment is delayed or is inaccurate as of the date of estimation, we adjust the estimated membership to also reflect the number of members for whom we expect to receive or to refund a commission payment. Further, to the extent we have received substantially all of the commission payments related to a given month during the period being estimated, we will take the number of members for whom we have received or applied a commission payment during the month of estimation. For ancillary health insurance plans, the one-to-three-month period varies by insurance product and is largely dependent upon the timeliness of commission payment and related reporting from the related carriers.

Current wording

(1)To estimate the number of members on Medicare-related, individual and family, and ancillary health insurance plans, we take the respective sum of: (i) the number of members for whom we have received or applied a commission payment for a month that may be up to three months prior to the date of estimation (after reducing that number using historical experience for assumed member cancellations over the period being estimated); and (ii) the number of approved members over that period (after reducing that number using historical experience for an assumed number of members who do not accept their approved policy and for estimated member cancellations). To the extent we determine through confirmations from a health insurance carrier that a commission payment is delayed or is inaccurate as of the date of estimation, we adjust the estimated membership to also reflect the number of members for whom we expect to receive or to refund a commission payment. Further, to the extent we have received substantially all of the commission payments related to a given month during the period being estimated, we will take the number of members for whom we have received or applied a commission payment during the month of estimation. For ancillary health insurance plans, the one-to-three-month period varies by insurance product and is largely dependent upon the timeliness of commission payment and related reporting from the related carriers.

Previous wording

March 31, 2024 compared to March 31, 2023 - Total estimated membership declined 5% as of March 31, 2024 compared to March 31, 2023 due to:

Current wording

June 30, 2024 compared to June 30, 2023 - Total estimated membership declined 3% as of June 30, 2024 compared to June 30, 2023 due to:

Previous wording

•an 18%, 13% and 5% decline year-over-year in individual and family plan, ancillary plan and small business plan estimated membership, respectively, due to a decrease in approved applications as we focus on implementing operational enhancements with a plan to resume enrollment growth in our E&I segment in the fourth quarter.

Current wording

•an 11%, 11% and 3% decline year-over-year in individual and family plan, ancillary plan and small business plan estimated membership, respectively, primarily due to a decrease in approved applications as we focus on implementing operational enhancements with a plan to resume enrollment growth in our E&I segment in the fourth quarter of 2024; and

Previous wording

The numerator used to calculate each member acquisition metric discussed above is the portion of the respective operating expenses for CC&E and marketing and advertising that is directly related to member acquisition for our sale of Medicare Advantage, Medicare Supplement and Medicare Part D prescription drug plans (collectively, “Medicare Plans”) and for all individual and family major medical plans and short-term health insurance plans (collectively, “IFP Plans”), respectively. The denominator used to calculate each metric is based on a derived metric that represents the relative value of the new members acquired. For Medicare Plans, we call this derived metric Medicare Advantage (“MA”)-equivalent approved members, and for IFP Plans, we call this derived metric IFP-equivalent approved members. The calculations for MA-equivalent approved members and for IFP-equivalent approved members are based on the weighted number of approved members for Medicare Plans and IFP Plans during the period, with the number of approved members adjusted based on the relative LTV of the product they are purchasing. Since the LTV for any product fluctuates from period to period, the weight given to each product was determined based on their relative LTVs at the time of our adoption of ASC 606.

Current wording

The numerator used to calculate each member acquisition metric discussed above is the portion of the respective operating expenses for CC&E and marketing and advertising that is directly related to member acquisition for our sale of Medicare Advantage, Medicare Supplement and Medicare Part D prescription drug plans (collectively, “Medicare Plans”) and for all individual and family major medical plans and short-term health insurance plans (collectively, “IFP Plans”), respectively, for which we are the broker of record. The denominator used to calculate each metric is based on a derived metric that represents the relative value of the new members acquired. For Medicare Plans, we call this derived metric Medicare Advantage (“MA”)-equivalent approved members, and for IFP Plans, we call this derived metric IFP-equivalent approved members. The calculations for MA-equivalent approved members and for IFP-equivalent approved members are based on the weighted number of approved members for Medicare Plans and IFP Plans during the period, with the number of approved members adjusted based on the relative LTV of the product they are purchasing. Since the LTV for any product fluctuates from period to period, the weight given to each product was determined based on their relative LTVs at the time of our adoption of ASC 606.

Previous wording

Three Months Ended March 31, 2024 and 2023 - Total acquisition cost per MA-equivalent approved member increased $89, or 12%, during the three months ended March 31, 2024 compared to the same period in 2023, driven by:

Current wording

Three Months Ended June 30, 2024 and 2023 - Total acquisition cost per MA-equivalent approved member decreased $46, or 4%, during the three months ended June 30, 2024 compared to the same period in 2023, driven by:

Previous wording

Three Months Ended March 31, 2024 and 2023 - Total acquisition cost per IFP-equivalent approved member increased $66, or 43%, during the three months ended March 31, 2024 compared to the same period in 2023, driven by:

Current wording

Three Months Ended June 30, 2024 and 2023 - Total acquisition cost per IFP-equivalent approved member increased $57, or 20%, during the three months ended June 30, 2024 compared to the same period in 2023, driven by:

Previous wording

•a $49, or 44%, increase in CC&E cost per IFP-equivalent approved member due the overall decline in individual and family plan, ancillary and small business approved members; and

Current wording

•a $54, or 23%, increase in CC&E cost per IFP-equivalent approved member due the overall decline in individual and family plan, ancillary and small business approved members as a result of a decline in our conversion rates; and

Previous wording

•an $18, or 45%, increase in variable marketing cost per IFP-equivalent approved member, primarily driven by the decline in approved members.

Current wording

•a $3, or 5%, increase in variable marketing cost per IFP-equivalent approved member, primarily driven by the decline in approved members as a result of a decline in our conversion rates.

Previous wording

There have been no changes to our critical accounting policies and estimates described in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission on February 29, 2024, that have had a significant impact on our condensed consolidated financial statements and related notes. Please refer to Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2023, for a complete discussion of our other critical accounting policies and estimates.

Current wording

There have been no changes to our critical accounting policies and estimates described in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission on February 29, 2024, that have had a significant impact on our condensed consolidated financial statements and related notes. Please refer to Management’s Discussion and Analysis of Financial Condition and Results of

Previous wording

Three Months Ended March 31, 2024 and 2023 – Commission revenue increased $12.9 million, or 19%, during the three months ended March 31, 2024 compared to the same period in 2023 due to:

Current wording

Three Months Ended June 30, 2024 and 2023 – Commission revenue decreased $3.3 million, or 6%, during the three months ended June 30, 2024 compared to the same period in 2023 due to:

Previous wording

Other revenue increased $6.3 million, or 110%, during the three months ended March 31, 2024 compared to the same period in 2023 due to an increase in sponsorship revenue.

Current wording

Other revenue increased $2.4 million, or 37%, during the three months ended June 30, 2024 compared to the same period in 2023 due to an increase in fee-based revenue due to a shift in some of our Amplify broker of record arrangements to fee-based arrangements.

Previous wording

◦a 10% increase in overall Medicare plan approved members, specifically driven by increases in Medicare Advantage and Medicare Supplement plan approved members;

Current wording

◦a 6% increase in overall Medicare plan approved members, specifically driven by increases in Medicare Advantage and Medicare Supplement plan approved members;

Previous wording

Three Months Ended March 31, 2024 and 2023 – Marketing and advertising expenses increased $5.9 million, or 18%, during the three months ended March 31, 2024 compared to the same period in 2023, primarily driven by a $4.0 million increase in variable advertising costs and a $1.1 million increase in fixed marketing costs as we returned to growth in our Medicare segment after completing our business transformation plan in fiscal 2023. The increase in variable advertising costs was primarily related to our direct marketing channels and reflects our plan to attract and retain beneficiaries in fiscal 2024.

Current wording

Six Months Ended June 30, 2024 and 2023 – Marketing and advertising expenses increased $9.2 million, or 16%, during the six months ended June 30, 2024 compared to the same period in 2023, primarily driven by a $6.8 million increase in variable advertising costs, a $0.9 million increase in personnel costs, a $0.8 million increase in software costs and a $0.4 million increase in fixed marketing costs as we returned to growth in our Medicare segment after completing our business transformation plan in fiscal 2023. The increase in variable advertising costs was primarily related to our direct marketing channels and brand investment.

Previous wording

Three Months Ended March 31, 2024 and 2023 – Customer care and enrollment expenses increased $7.8 million, or 31%, during the three months ended March 31, 2024 compared to the same period in 2023, primarily due to increases of $5.8 million in personnel costs, $0.9 million in higher licensing costs and $0.7 million in software subscription costs. The increase in personnel costs reflect the scaling of our agent force supporting our dedicated carrier efforts, retention of a greater number of licensed advisors subsequent to our most recent AEP to support enrollment growth planned for fiscal 2024 and expansion of our member retention efforts.

Current wording

Six Months Ended June 30, 2024 and 2023 – Customer care and enrollment expenses increased $6.4 million, or 12%, during the six months ended June 30, 2024 compared to the same period in 2023, primarily due to increases of $4.9 million in personnel and compensation costs and $1.2 million in licensing costs. The increase in personnel costs reflect the scaling of our agent force supporting our dedicated carrier efforts, retention of a greater number of licensed advisors subsequent to our most recent AEP to support enrollment growth planned for fiscal 2024 and expansion of our member retention efforts.

Previous wording

Three Months Ended March 31, 2024 and 2023 – Technology and content expenses decreased $1.0 million, or 7%, during the three months ended March 31, 2024 compared to the same period in 2023, primarily driven by a $0.7 million decrease in amortization of internally developed software and a $0.3 million decrease in other expenses.

Current wording

Three Months Ended June 30, 2024 and 2023 – Technology and content expenses decreased $1.4 million, or 10%, during the three months ended June 30, 2024 compared to the same period in 2023, primarily driven by a $0.7 million decrease in amortization of internally developed software and a $0.5 million decrease in personnel and compensation costs due to lower headcount as a result of our continued cost reduction initiative.

Previous wording

General and administrative expenses include compensation and benefits costs for personnel working in our executive, finance, investor relations, government affairs, legal, compliance, human resources, facilities and internal information technology departments. These expenses also include fees paid for outside professional services, tax, legal, government affairs and information technology fees.

Current wording

General and administrative expenses include compensation and benefits costs for personnel working in our executive, finance, investor relations, government affairs, legal, compliance, human resources, facilities and internal

Previous wording

Three Months Ended March 31, 2024 and 2023 – General and administrative expenses decreased $4.7 million, or 19%, during the three months ended March 31, 2024 compared to the same period in 2023, primarily driven by a $2.8 million decrease in personnel and compensation costs, a $0.8 million decrease in consulting expenses and a $0.7 million decrease in software subscriptions and other expenses.

Current wording

Six Months Ended June 30, 2024 and 2023 – General and administrative expenses decreased $7.4 million, or 15%, during the six months ended June 30, 2024 compared to the same period in 2023, primarily driven by a $3.3 million decrease in personnel and compensation costs, a $1.4 million decrease in professional fees, a $1.2 million decrease in facilities and other operating expenses and a $0.6 million decrease in consulting expenses.

Previous wording

Three Months Ended March 31, 2024 and 2023 – We incurred $6.3 million in impairment, restructuring and other charges for the three months ended March 31, 2024 compared to no impairment, restructuring and other charges for the three months ended March 31, 2023. These charges consisted of $5.5 million of impairment related to several of our leased office spaces, which was comprised of $5.1 million of operating lease right-of-use asset impairments and $0.4 million of property and equipment impairments. We also incurred $0.8 million of restructuring charges which primarily related to employee termination benefits as a result of our cost-reduction efforts during the first quarter of fiscal 2024.

Current wording

Six Months Ended June 30, 2024 and 2023 – We incurred $9.3 million in impairment, restructuring and other charges for the six months ended June 30, 2024 compared to no impairment, restructuring and other charges for the six months ended June 30, 2023. These charges consisted of $7.4 million of impairment related to several of our leased office spaces, which was comprised of $6.9 million of operating lease right-of-use asset impairments and $0.5 million of property and equipment impairments. We also incurred $1.9 million of restructuring charges which primarily related to employee termination benefits as a result of our cost-reduction efforts during the first half of fiscal 2024.

Previous wording

Three Months Ended March 31, 2024 and 2023 –Interest expense increased by $0.2 million, or 9%, primarily driven by a $0.2 million increase in debt interest expense as a result of higher interest rates.

Current wording

Three Months Ended June 30, 2024 and 2023 –Interest expense increased by $0.1 million, or 5%, primarily driven by a $0.1 million increase in debt interest expense as a result of higher interest rates.

Previous wording

Three Months Ended March 31, 2024 and 2023 – Other income, net, was $2.4 million during the three months ended March 31, 2024, compared to other income, net, of $2.0 million during the three months ended March 31, 2023. The change was primarily due to a $0.2 million increase in interest income as a result of more favorable short-term investment rates.

Current wording

Three Months Ended June 30, 2024 and 2023 – Other income, net, was $2.3 million during the three months ended June 30, 2024, compared to other income, net, of $2.8 million during the three months ended June 30, 2023. The change was primarily due to a $0.2 million increase in interest income as a result of more favorable short-term investment returns.

Previous wording

Three Months Ended March 31, 2024 and 2023 – Our effective tax rate of 7.3% for the three months ended March 31, 2024 was lower than our 15.4% effective tax rate for the three months ended March 31, 2023 primarily due to fluctuations in stock-based compensation adjustments, non-deductible lobbying expenses and an increase in global intangible low-taxed income, partially offset by research and development credits and state taxes. Our effective tax rate for the three months ended March 31, 2024 was lower than the statutory federal tax rate due primarily to stock-based compensation adjustments and non-deductible lobbying expenses, partially offset by research and development credits and state taxes.

Current wording

Three Months Ended June 30, 2024 and 2023 – Our effective tax rate of 1.8% for the three months ended June 30, 2024 was lower than our 9.8% effective tax rate for the three months ended June 30, 2023 primarily due to fluctuations in stock-based compensation adjustments and the change from using an annualized effective tax rate method to using the actual effective tax rate to calculate our provision for income taxes. Our effective tax rate for the three months ended June 30, 2024 was lower than the statutory federal tax rate due primarily to stock-based compensation adjustments, non-deductible lobbying expenses and changes in our valuation allowance, partially offset by research and development credits and state taxes.

Previous wording

The Medicare segment consists primarily of amounts earned from our sale of Medicare-related health insurance plans, including Medicare Advantage, Medicare Supplement and Medicare Part D prescription drug plans, fees earned for the performance of administrative services, amounts earned from our non-broker of record arrangements, our performance of various post-enrollment services for members and to a lesser extent, amounts earned from our sale of ancillary products sold to our Medicare-eligible customers, including but not limited to, dental and vision plans, as well as amounts we are paid in connection with our advertising program for marketing and other services.

Current wording

The Medicare segment consists primarily of amounts earned from our sale of Medicare-related health insurance plans, including Medicare Advantage, Medicare Supplement and Medicare Part D prescription drug plans, fees earned for the performance of administrative services, amounts earned from our non-broker-of-record, or fee-based, arrangements, our performance of various post-enrollment services for members and to a lesser extent, amounts earned from our sale of ancillary products sold to our Medicare-eligible customers, including but not limited to, dental and vision plans, as well as amounts we are paid in connection with our advertising program for marketing and other services.

Previous wording

Marketing and advertising, customer care and enrollment, technology and content and general and administrative operating expenses that are directly attributable to a segment are reported within the applicable segment. Indirect marketing and advertising, customer care and enrollment, and technology and content operating expenses are allocated to each segment based on usage. Corporate consists of other indirect general and administrative operating expenses, excluding stock-based compensation expense, depreciation and amortization, which are managed in a corporate shared services environment and, since they are not the responsibility of segment operating management, are not allocated to the reportable segments and are instead reported within Corporate. Our results below reflect our updated methodology used in allocating certain expenses beginning in the first quarter of fiscal 2024, and results from the prior period presented have been recast to conform with the current period presentation.

Current wording

Marketing and advertising, customer care and enrollment, technology and content and general and administrative operating expenses that are directly attributable to a segment are reported within the applicable segment. Indirect marketing and advertising, customer care and enrollment, and technology and content operating expenses are allocated to each segment based on usage. Corporate consists of other indirect general and administrative operating expenses, excluding stock-based compensation expense, depreciation and amortization, which are managed in a corporate shared services environment and, since they are not the responsibility of segment operating management, are not allocated to the reportable segments and are instead reported within Corporate. Our results below reflect our updated methodology used in allocating certain expenses beginning in the

Previous wording

Our Medicare segment profit was $8.3 million during the three months ended March 31, 2024, an improvement of $8.9 million, compared to a segment loss of $0.6 million for the same period in 2023. This increase was primarily driven by a $20.6 million increase in revenue from our Medicare segment, partially offset by an $11.7 million increase in operating expenses from our Medicare segment, excluding stock-based compensation expense, depreciation and amortization, impairment, restructuring and other charges, interest expense and other income, net. The increase in operating expenses was mostly attributable to continued implementation of our initiatives to attract and retain beneficiaries in fiscal 2024.

Current wording

Our Medicare segment profit was $1.3 million during the three months ended June 30, 2024, an improvement of $3.3 million, compared to a segment loss of $2.1 million for the same period in 2023. This increase was primarily driven by a $3.8 million increase in revenue from our Medicare segment, partially offset by a $0.5 million increase in operating expenses from our Medicare segment, excluding stock-based compensation expense, depreciation and amortization, impairment, restructuring and other charges, interest expense and other income, net. The increase in operating expenses was mostly attributable to continued implementation of our initiatives to attract and retain beneficiaries in fiscal 2024.

Previous wording

Three Months Ended March 31, 2024 and 2023 – Revenue from our Medicare segment increased $20.6 million, or 33%, during the three months ended March 31, 2024 compared to the same period in 2023, primarily attributable to a $14.1 million increase in commission revenue. The increase in Medicare segment commission revenue is primarily due to a $7.9 million increase in Medicare Advantage plan related commission revenue driven by 9% growth in Medicare Advantage plan approved members and improved constrained LTV of commissions per approved member for all Medicare products compared to the same period in the prior year as we executed on our transformation initiatives to optimize customer acquisition spend and ultimately grow profitability. Additionally, the Medicare segment had $1.0 million in net adjustment revenue from prior period enrollments for the three months ended March 31, 2024, compared to $0.1 million in net adjustment revenue for the same period in 2023.

Current wording

Six Months Ended June 30, 2024 and 2023 – Revenue from our Medicare segment increased $24.4 million, or 21%, during the six months ended June 30, 2024 compared to the same period in 2023, primarily attributable to a $15.3 million increase in commission revenue. The increase in Medicare segment commission revenue is primarily due to a $4.7 million and $4.4 million increase in Medicare Advantage plan and Medicare Supplement plan related commission revenue, respectively, driven by an 8% growth in both Medicare Advantage plan and Medicare Supplement plan approved members. Additionally, the increase in Medicare segment commission was due to improved constrained LTV of commissions per approved member for Medicare Advantage plans and Medicare Supplement plans compared to the same period in the prior year. These increases were partially offset by $11.7 million in net adjustment revenue from prior period enrollments for the six months ended June 30, 2024, compared to $13.5 million in net adjustment revenue for the same period in 2023 in our Medicare segment.

Previous wording

Three Months Ended March 31, 2024 and 2023 – Revenue from our E&I segment decreased $1.3 million, or 11%, during the three months ended March 31, 2024 compared to the same period in 2023, primarily attributable to a $1.2 million decrease in commission revenue due to declines in individual and family plan, ancillary product and small business approved members as well as a decrease in constrained LTV of commissions per approved member for non-qualified plans, partially offset by an increase in LTV of commissions per approved member for qualified, dental and vision plans. The reduced volumes are a result of our focus on implementing operational enhancements in the E&I segment and we plan to return to enrollment growth in the fourth quarter of fiscal 2024.

Current wording

Three Months Ended June 30, 2024 and 2023 – Revenue from our E&I segment decreased $4.7 million, or 42%, during the three months ended June 30, 2024 compared to the same period in 2023, primarily attributable to a $4.6 million decrease in commission revenue driven by lower net adjustment revenue from prior period enrollments. Net adjustment revenue from prior period enrollments for the three months ended June 30, 2024 was $0.8 million, compared to $5.3 million for the same period in 2023. Revenue also decreased due to declines in individual and family plan, ancillary product and small business approved members, partially offset by an increase in LTV of commissions per approved member for most products in our E&I segment. The reduced volumes are a result of our focus on implementing operational enhancements in the E&I segment and we plan to return to enrollment growth in the fourth quarter of fiscal 2024.