eHealth, Inc. (NASDAQ:EHTH) Q3 2023 Earnings Call Transcript

Page 2 of 2

Fran Soistman: Yes. I phrased the question poorly. That’s generally the direction I was going in is, I would expect that you guys should see a little bit of PDP to MA conversion in 24 in 25, I’m sorry. I appreciate the comment?

Operator: Thank you. Your next question comes from Ben Hendrix from RBC Capital Markets.

Michael Murray : This is Michael Murray on for Ben. Could you discuss the scaling of your telesales organization ahead of ahead of AEP. how does this compare to prior years? And how are you thinking about the efficiency of these agents given potentially limited experience?

Fran Soistman: The scaling has, I would say is comparable to what we did a couple years ago. As you know, we needed to reset, our sales organization and is part of the transformation, and we did that successfully in April of 2022. The advancements that have been made on our sales effectiveness, and our marketing optimization gave us confidence that we could scale it again. Plus, through our diversification efforts and having the dedicated carrier BTO capabilities, we needed to ramp up for that opportunity. So, that didn’t exist when we were last at a comparable level a few years back. So, the scaling really accomplishes are strategic needs on the agency side as well as on the dedicated carrier BPO side of our businesses. As far as the tenure.

What I can tell you, Meds, and it’s really a testament to the effectiveness of our training. Our sales organization has just an incredibly, well-tuned training capability that is continuous. It’s not one and done. I mean, it is continuous. Every day, we send out what we call a slew bite, and it’s a pretty 4 minute video that provides training tips to both new and tenured agents. And I watch them every day because, it’s important to understand, what we’re focusing on and its message resonating. So, Training is not one and done, it’s continuous, and it’s been effective at narrowing the gap between tenured agents conversion performance and new hires. So, I’m really pleased with the progress. And the learning curve is fast. And I think we accelerated because of all of our training techniques.

Michael Murray : And then just a quick one on, your local teams. Could you remind us, how many markets you’re in for this AEP? And how does performance in these markets compare with other markets?

Fran Soistman: Sure. Well, Mike, we started with really, 2 teams last year. We needed proof of concept that it does produce better performance than focusing only on a national operating model. And it absolutely did proof that local healthcare is local. And we’ve found that when you have agents that our focus more on what’s available in a defined, a very defined geographic region, not just from a carrier perspective, but from a provider perspective, particularly with value-based arrangements, and plans that offer social determinative health solutions, they can be even more effective in being responsive to beneficiaries’ needs. We expanded that to 6 markets this year, and early signs are confirming that it continues to be the right model. How far we go with this remains to be seen, but I think we made an important investments for ‘23 and it’s looking good.

Operator: Thank you. There are no further questions at this time. I’ll turn the call over to Fran Soistman for closing remarks. Please go ahead.

Fran Soistman: Well, thank you, operator. And thank you, everyone, again, for listening in on our call today. And we look forward to having one on one conversations over the coming days. Thank you.

Follow Ehealth Inc. (NASDAQ:EHTH)

Page 2 of 2