eHealth . . . the competitor

[somarco]

Who is eHealth?

Arguably the largest brokerage agency for health insurance in the country.

How do they do it?

The spend a lot of money to brand themselves as THE source for the "lowest rates" on health insurance.

What are their results?

Funny you should ask.

They are a publicly traded company (EHTH) on NASDAQ. As such, anyone has access to their financials.

A quick look at their 2006 report indicates they had gross revenues from all sources of $61.3M.

Not shabby.

Their marketing and advertising costs were $21.4M.

So . . . for every $1 they spend in generating leads they receive about $3 in revenue.

My worst month is $5 in revenue for every $1 invested.

Who's afraid of the big bad wolf?

Not me.

 

[Crabcake Johnny]

If every one of my clients had run their own quotes and applied online since I went independent my best guess is I'd only have 15% of the book I currently have.

What percentage of applications submitted through Ehealth....

*Have missing medical information, client never answers when the company tries to call.

*Don't properly state all pre-ex conditions and policies are yanked in a claims review

*Don't have clients accept the decision - be it a rate increase or rider

*Get declined

*Are cancelled within the 1st year because the client didn't understand the plan.

The answer is probably 80%.

 

[Mike_Golden1]

I'm guessing that Ehealthinsurance is even less worried about you or anyone else that might read or post on this board...

 

[Crabcake Johnny]

Yeah, the owners of Ehealth are laughing all the way to the bank. Would any of us complain? What if we had 20 apps a day filled out through our website and only placed 5. Would any of us turn away 25 placed apps per week?

 

[Expat]

Competition

Who is eHealth?
They are a publicly traded company (EHTH) on NASDAQ. As such, anyone has access to their financials.
A quick look at their 2006 report indicates they had gross revenues from all sources of $61.3M.
Not shabby.
Their marketing and advertising costs were $21.4M.
So . . . for every $1 they spend in generating leads they receive about $3 in revenue.
My worst month is $5 in revenue for every $1 invested.
Who's afraid of the big bad wolf?
Not me.

ALL OF THESE GO TO E-HEALTHINURANCE
http://insureme.com
http://www.lifeandhealth.com/
www.thehealthinsurancecenter.com
http://www.4-health-insurance-rates.com
http://www.health-insurance.bz/ (Goes to insureme.com)
Http://www.usinsuranceonline.com
http://www.givemeinsurancequotes.com
https://www.insurecom.com (Goes to insureme.com)
http://www.health-insurance.bz/ (Goes to insureme.com)
http://www.sagequotes.com/ (Goes to insureme.com)
http://www.insurancewinners.com (Goes to insureme.com)
http://www.healthinsurancesort.com/ (Goes to insureme.com)
http://mostchoice.com

I will not use any of the above companies, as I have no intentionor making ehealthinsurance richer.
In my opinion they may only be getting a 3 to 1 return on their outlay, but they are spending around $21,000,000 each year.
They obviously have a poor retention rate, but you can be surethe ones that stick are the healthy people with no pre-exists.
This leaves the ones that were declined, rated up or had a bunchof waivers, who will again get on the net, fill out a form, and then finally talk to an agent. Whichever way you cut it, these
people are formidable competitors.

 

[Expat]

Yeah, the owners of Ehealth are laughing all the way to the bank. Would any of us complain? What if we had 20 apps a day filled out through our website and only placed 5. Would any of us turn away 25 placed apps per week?

No kidding, I would laugh so much I would need industrial strength diapers!

 

[somarco]

the ones that stick are the healthy people with no pre-exists.

It's usually just the opposite.

Healthy ones leave, sick ones stay.

I don't consider them competitors and I really don't care if the lead companies have an eHealth link or not. I am still going to get my share and that's all that really matters.

I figure the prospects are going to buy somewhere. Might as well be from me.

 

[Crabcake Johnny]

Worst lead in the world is a healthy person with no current coverage.

 

[taterpeeler]

ehealth will run u out of business on the health side... why? because they got 21 million to spend... and u dont... back in the day gibsons depart. store thought the same thing about walmart and wollworths drug store thought the same about walmart and walgreens... get a clue people... get out from under the rock and see that these people are out to kill u.... but what do i know??/ i have only been in the ind. health biz for 15 years and in home sales for 23 years

 

[Mike_Golden1]

ehealth will run u out of business on the health side... why? because they got 21 million to spend... and u dont... back in the day gibsons depart. store thought the same thing about walmart and wollworths drug store thought the same about walmart and walgreens... get a clue people... get out from under the rock and see that these people are out to kill u.... but what do i know??/ i have only been in the ind. health biz for 15 years and in home sales for 23 years

that is an absurd argument. Ehealth has 61M in revenue, which is about $200M in Annualized Premium-the total size of the annual individual health insurance market, according to a McKinsey report published in March, 2007, will be $550-600 Billion dollars by 2011. Ehealth, therefore, represents <1% of that market.

This is a huge market and there are many different business models that can be supported within the overall structure. Suggesting that (1) Ehealth will dominate this or (2) that small individual brokers like most of us have any influence over the total market or (3) that the future for the small broker is bleak have no basis in fact.

Based on the above it is clear that none of us has anything to worry about regarding the future of our individual businesses unless regulatory changes eliminates the marketplace, which has about as much chance of happening nationally as Barry Bonds does of proving he has neve taken performance enhancing drugs.