A Web-based health insurance broker says it sees reasons for optimism in its second-quarter results.
The company, eHealth Inc. (Nasdaq:EHTH), is reporting $5.8 million in net income for the latest quarter on $40 million in revenue, compared with $3 million in net income on $43 million in revenue for the second quarter of 2014.
The number of individual and family medical applications submitted to 23,900, from 24,800 in the year-earlier quarter, and the total number of approved major medical members fell to 125,200 from 208,000.
The Patient Protection and Affordable Care Act of 2010 (PPACA) has led to major changes in the flow of major medical applications. Regulators, PPACA exchanges and insurers now use an “open enrollment period” system to discourage consumers from waiting until they get sick to pay for coverage. Consumers who want to buy coverage outside the open enrollment period must qualify for a special enrollment period (SEP).
The number of Medicare Advantage and Medicare supplement plan applications submitted through eHealth systems jumped to 15,600 in the second quarter, from 9,500 and the number of Medicare Part D prescription drug plan applications increased to 18,600 from 13,100.
The number of Medicare plan enrollees served increased to 169,100 from 113,200.
The total average level of commission revenue per enrollee increased to $32.45 from $30.40.
The company did not give per-application commission averages for major medical coverage, but the company says the average level of commission revenue per major medical enrollee increased.
Stuart Huizinga, the company’s chief financial officer, said during a conference call with securities analysts that the company saw insurers processing initial commission payments on approved policies more quickly.