GoHealth (GOCO) 2024 Southwest IDEAS Conference summary

Market environment and industry trends

• Annual Enrollment Period (AEP) is experiencing unprecedented disruption, with major health plans exiting or degrading plans, leading to more consumers needing to shop for new coverage than ever before.

• Over 65 million Medicare consumers, with 54% now choosing Medicare Advantage, and nearly 80% of new enrollees opting for these plans.

• Plan exits and benefit reductions have displaced 2 million consumers this year, a 20x increase from last year, and 8 million have experienced plan degradations.

• These disruptions are expected to drive elevated shopping activity for at least the next three quarters.

Business model and differentiation

• Focused exclusively on Medicare Advantage, serving over 10 million unique consumers in the past five years and acting as the top enrollment source for all major health plans.

• Differentiated by a technology-driven, unbiased approach that compensates agents for providing the best outcome, even if it means no new enrollment.

• Proprietary AI and workflow tools enable personalized plan matching, leveraging 30 million shopping experiences to optimize recommendations.

• Internal CRM and data platforms support customized consumer engagement and efficient agent operations.

Financial performance and operational efficiency

• Achieved a turnaround from burning over $300 million in cash in 2021 to generating $109 million in positive cash flow in 2023, while paying down $200 million in debt and refinancing $500 million.

• Cost per acquisition improved 9% year-over-year in 2023, with further gains expected in the current year.

• Agent productivity increased by 46% year-over-year in Q3, driven by technology that reduced average handle time from 150 to under 60 minutes.

• Focus on balancing cash deployment between debt reduction and business growth, with a high hurdle rate for new investments.