GoHealth Inc.’s 4th Quarter 2021 LTV and Approved Policy results
Telos Actuarial recently compiled key information on GoHealth Inc.’s (NASDAQ: GOCO) 4th Quarter Financial results.
One of the key metrics reported by GoHealth 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.
For the full year, GoHealth’s LTV decreased for Medicare Advantage (“MA”) by 6%, increased for Medicare Supplement (“MS”) by 1%, and remained level for Prescription Drug Plans (“PDP”) when compared to 2020.
GoHealth’s commentary on LTV mentions some of the reasons for the changes in LTV. They mention that the decrease in Medicare Advantage LTV “was primarily attributable to an increase in consumer shopping, resulting in lower persistency and an increased constraint added to the LTV for the three months ended December 31, 2021”
Another key metric reported by GoHealth is approved policy counts (for commissionable policies). Overall approved policy counts for the Medicare segment increased 83% year-over-year.
Growth in approved policy counts continues to be driven by Medicare Advantage.
*Estimated based on year-end results
Source data: GoHealth Inc.’s quarterly Form 10-Q & Form 10-K (https://investors.gohealth.com/financial-information/quarterly-results)
Telos Actuarial helps distributors maximize the lifetime value (“LTV”) of their commissions by providing persistency analysis, industry lapse and persistency reports, projected commission cash flow analysis, and LTV calculations. Send us an email for more information. info@telosactuarial.com
