Operator: Thank you. Our next question comes from Jim Sidoti with Sidoti & Company. Your line is open.
Jim Sidoti: Hi, good morning. And thanks for taking the questions. First, I am sorry if I missed it, but did you break out the revenue spread agency versus non-agency?
Vijay Kotte: Yes. It’s in our reported numbers. We can give you those. But yes, we do break it out. There’s a specific line item for non-agency and agency. And for the quarter, Jason, you want to give the number?
Jason Schulz: Yes. So, for the quarter, we had a total revenue of $131 million, and the agency was $97 million. 0.8 of that total.
Jim Sidoti: Right. And just a big picture view, it seems like you’ve done a lot since you’ve been there to right-size the business, improve software to kind of make these improvements. Are there any near-term initiatives that you need to complete to continue to make progress? And is it – now is it a matter of just increasing volume?
Vijay Kotte: Yes. I think it’s a great question, Jim. And I appreciate you asking it. There is a lot of opportunity, as I said, about addressing new populations. So, if we wanted to just address the same population that we’ve been very good and efficient at addressing thus far, there is not a lot of enhancement necessary to do that. And if you think about our preparedness for this AEP, everything we wanted to deliver, we did deliver for that purpose and are rolling forward with it. As I look forward at other opportunities, we will, as we alluded to Sandeep’s question earlier, make strategic investments in our technology and another element to be able to address future growth in differential growth opportunities for the company.
So, I’m hopeful that’s responsive to your question. But yes, I think there are going to be enhancements but not for the current core population we target. But as we expand that serviceable market, we will absolutely be making more enhancements and investments.
Jim Sidoti: Right. And I know it’s pretty recent, some of the new regulations on Medicare plans, but just initial thoughts, do you think that’s good, bad, kind of neutral to prospects of GoHealth.
Vijay Kotte: No, I appreciate the question. And as we look at it, first and foremost, I think, what we are absolutely excited about, as I said earlier, is that we are fully aligned with all efforts and initiatives by any related parties, government or otherwise, to help support protecting the Medicare consumer and enabling them to make a good personalized unbiased decision. So, we are very supportive of that and their rules. We also do recognize that there’s opportunity within the industry to eliminate bad actors and make sure that those behaviors are regulated. That said, not everybody in the industry is a bad actor, and a lot of parties like ourselves are focused on doing the right thing. And still today, over 70% of all Medicare Advantage enrollment is supported by independent brokers in some way, shape or form.
And so, we absolutely want to make sure that we’re supporting all that work, that we have regulations that are put in place to enable those who are doing the right thing to continue doing the right thing, because there is consistent enforcement of those things. And as we think about that, there is no doubt that when we look at the incentives across the industry, we want to align all incentives with that of the consumer and their well-being. And what we are excited about is the things we’ve already proactively done this year before any conversations about a number of these items that are addressed in the current proposed rules, we have already gotten ahead of, including compensating our agents. We are just doing the right thing and making sure that there is no – some on the scale, per se, about selecting different health plans.
So, one thing is for sure, as we think about all of those key underlying factors, there is a lot of details still left to be said about the specific regulations. We don’t know how that we interpret it. We know that there’s interpretations and definitions will be clarified over time, as they always are year-over-year. And we’re confident that the regulators and parties like ourselves will all come to the right conclusions about where we need to end up. I think it was very early in the interpretation and discussion of those regulations.
Jim Sidoti: All right, thank you.
Operator: Thank you. Our next question comes from Greg Aurand with Noble Capital. Your line is open.
Greg Aurand: Good morning everybody. Thanks for taking my call. I appreciate it. A very nice quarter in advance of the flurry of activity expected in Q4. A question about pricing changes, in terms – we expect the consumer to pay more regardless of what they do because price is in Part D, I think it’s going up to some extent. But fortunately, they have more choices appears coming – going forward as well, which helps you in terms of getting more shopping eyeballs. The question I have is how does increased pricing affect your commission rates? And then as a second part to my question, you referenced constraints, how much do the constraints put a break on your revenue recognition? And will that change over time?
Vijay Kotte: Yes. Greg, let me hit your first question and then I’ll let Jason address the constraint item. As it relates to pricing, given most of the population that seeks our services are targeting zero premium products in the Medicare Advantage space, it’s less about the pricing of the product specifically. It’s more about their own challenges with their own pocket books, right, the availability of capital, disposable capital and what they are willing and able to spend on co-pays and other things along the way. And it is important to have a mechanism for using the advanced proprietary technology to be able to enable a licensed agent to take that information, understand the specific unique needs of the consumer and then put them through the different trade-offs of what different benefits are available for what they are able to pay for their coverage and very specifically aligned to what they need and will likely need in the coming future for those benefits.
So, I think that’s a really important piece of the puzzle is just ensuring that we are cognizant of the fact that the free and available cash for the consumer is getting compressed or challenged at times. And it’s important for us to be able to factor that into the analysis of what plan and products we make available to them. And as carriers introduce more and more plans every year, it is more important for them to do that checkup so that we can help them assess if there are some better ways to maybe even support their income and their needs as opposed to what they had previously selected. Is that responsive to your question on pricing and the sensitivity within the market that we serve?
Greg Aurand: Yes. Thank you. I appreciate that, indeed. Even if you’re a zero premium though, there’s probably going to be a bump up for some consumers. I don’t think anybody is pay a little lot less. Does that have any change or impact on your commission that you generate per submission over time?
