2nd Quarter 2021 LTV Compared

Telos Actuarial recently posted articles detailing key metrics reported by SelectQuote, eHealth, and GoHealth on a quarterly basis. This post presents some of the same information for each company displayed side by side for Medicare lines of business.

One of the key metrics reported by publicly traded call centers on a quarterly basis is constrained Lifetime Value (“LTV”) per approved policy. LTV is the estimated amount of commissions the company expects to receive over the life of the policy, per approved policy.

LTV by quarter for Medicare Advantage, Medicare Supplement and Prescription Drug Plans is displayed below.

Though GoHealth reported increases in LTV for Medicare Advantage in recent quarters, the overall trend has been lower LTV across the Medicare market. Given that commission amounts generally increase each year, the lower LTV is most likely driven by higher lapse rates (lower persistency).

*Estimated based on year-end results (SelectQuote’s year-end results are reported as of the end of Q2)

**Estimated based on year-end results

Source data:  SelectQuote Inc.’s quarterly Form 10-Ks and 10-Qs (https://ir.selectquote.com/financials/quarterly-results/default.aspx)

eHealth Inc.’s quarterly Form 10-Q (https://ir.ehealthinsurance.com/financial-information/sec-filings)

GoHealth Inc.’s quarterly Form 10-Q (https://investors.gohealth.com/financial-information/quarterly-results)

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