GoHealth (GOCO) 17th Annual LD Micro Main Event Conference summary

Market dynamics and consumer trends

• 2024 annual enrollment period saw unprecedented disruption, with more consumers needing to shop due to plan exits and benefit reductions.

• Over 80% of Medicare shoppers use brokers, highlighting the need for guidance in a complex market with 40+ plan options per consumer.

• Medicare Advantage market is projected to grow at a 6.5% CAGR through 2030 and beyond.

• Major carriers rely on the organization as their top source of enrollments, reflecting strong industry positioning.

• Competitors scaled back agent capacity in 2024 due to cash constraints, while the organization expanded through acquisition.

Business model evolution and operational focus

• Shifted to a consumer-centric model, prioritizing unbiased plan recommendations and long-term relationships.

• Proprietary technology enables personalized plan matching, real-time confirmation, and efficient agent workflows.

• Agents are compensated for doing the right thing, even if no new enrollment occurs, fostering trust and reducing attrition.

• Innovative compensation models are being tested to reward agents for unbiased advice, regardless of market dynamics.

• Operational streamlining and technology have reduced agent ramp-up time from 18-24 months to four weeks.

Financial performance and efficiency gains

• Cost per acquisition improved by 30%-50% over public peers, with a 9% year-over-year improvement from 2022 to 2023.

• Cash flow from operations swung from -$340 million in 2021 to +$109 million in 2023, driven by operational changes.

• Debt reduced from $625 million in June 2022 to $425 million, with minimal new equity issuance.

• Focus remains on maintaining cash efficiency and scaling capacity without increasing absolute OpEx.

• Marketing and acquisition expenses are expensed as incurred, with further efficiency expected as scale increases.