eHealth, Inc (EHTH)

[VortMax]

boom time coming MA and D commission will be up 5% in 2021 based on CMS. 2021 allowed commission come out usually May 20th. Up 5% in LTV increases margin by 15% with this one move...their increasing online enrollments means margin likely will be up 20% in 2021 and of course sales will likely be much higher. I think they spend less in 2021 with less CAPEX and you see 25% margin expansion, on increased sales. 300M EBITDA not far away now...plus the fact that commission on MA and D likely to go up 3 to 5% each of the next set of years...will see EBITDA over 30% soon on their entire book...

https://www.cms.gov/newsroom/fact-sheets/2021-medicare-advantage-and-part-d-rate-announcement-fact-sheet

3The total does not include an adjustment for underlying coding trend. For 2021, CMS expects the underlying coding trend to increase risk scores, on average, by 3.56%.