Vijay Kotte: Yes. Thanks for the clarification. So as we think about the Encompass platform, we definitely have a lot of confidence in that cash flow profile, as we indicated, versus the traditional model. One should look at the in-period element of how we generate cash and our guidance that we provided there, what you’ll see with the lion’s share of our captive internal business going through the Encompass model and only a minority of our external channel flowing through that. You see that we’re generating a range of $75 million to $115 million of cash flow this year. And it’s included in that in some forms, you’re seeing that back-book cash flow flowing as well. But given the unit economics and the profile of Encompass, we’re seeing that in that year one cash process of all that business written within the calendar year, that is being realized within the year.
So we believe we have high confidence in the cash flow profile and this projection given the current assets and finding current asset value and the policies that are already effective this year from January through the remainder of this year. So as we think more long term, obviously, we can extend the question, but when you think about the current year, we feel fairly confident about the profile of the back book that is a current asset for payment in cash this year.
Operator: Our next question is coming from Jonathan Yong of Credit Suisse.
Jonathan Yong: I apologize if there’s any background noise here. Just given some of the changes in the Star Ratings and the preliminary MA rate notice and some of the volatilities with some of the bigger carriers, how are you kind of thinking about that interplay as we go into the 2023 AEP and what that may mean for your current book of assets if there’s a higher churn, et cetera?
Vijay Kotte: Thank you, Jonathan. Thanks for the question. It’s a great question. And I think it actually feeds well into the strategic comments that I provided earlier. We are definitely seeing that different health plans are behaving very differently in how they are reacting to reimbursement models, competitive landscape, et cetera. Different benefits in the non-SNP and the SNP products that are out there. The net-net of that is it is causing a lot of shopping amongst the population that we’ve historically attracted. That is really what we believe is actually in the best interest of beneficiaries to do that shop, to assess their personalized needs as they change dynamically every year against the different benefit plan options that are available.
And so as we think about the Encompass platform, it is more built around that idea. Now do we think that there’s exposure on the LTVs of the back-book? Well, part of what we’ve looked at in our overall modeling is contemplating what those tenures should look like knowing that this volatility is going to be there amongst health plan competitive positioning, and that shifting will likely take place. So we factored our best estimates of that type of behavior, not just in the 2023 expectations of competitive landscape, but understanding that over multiple years, you will still see that oscillation, either it be from benefit design strategy that carriers have or more specifically because of things that are implicated through the Stars program or other changes in reimbursement from CMS.
So in short, what I would say, Jonathan, is we’ve done our best to try to anticipate the fact that there could be some mix shifting both in prospective selling as well as in the behavior of our back book in the numbers that we presented here today.
Operator: Our next question will be from Ben Hendrik of RBC.
Ben Hendrix: Quick question on contracting. Can you remind us on how the Encompass contracting is progressing? You mentioned 50% of revenue kind of coming from that channel. And just give us an update on how receptivity has been among carriers to kind of — just to the fee-based model and how you see the mix progressing over the intermediate term?
