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  "documentTitle": "eHealth Inc. (EHTH)",
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  "authorName": "Carson Block",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-04-08 00:00:00",
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  "notes": "The slide argues that EHTH ignores ongoing service costs to justify booking multi-year commissions upfront.",
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      "text": "The crux of EHTH's application of ASC 606 is that EHTH books multiple years of commission revenue by claiming that no further performance on its part is necessary in order to collect these commissions.",
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      "text": "Ongoing Expenses: $51.3",
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      "text": "The crux of EHTH's application of ASC 606 is that EHTH books multiple years of commission revenue by claiming that no further performance on its part is necessary in order to collect these commissions.",
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      "text": "We estimate that EHTH has ongoing costs of service and retention of $96 per MA member per year, which includes commissions paid to partners.",
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      "kind": "paragraph",
      "text": "service or act to retain existing customers is central to EHTH's improper application of ASC 606.",
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      "kind": "quote",
      "text": "the approval of an application from health insurance carriers, which we define as our customers.",
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      "text": "\"the approval of an application from health insurance carriers, which we define as our customers.\" — EHTH 2019 10-K, p. 80",
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      "text": "eHealth Ongoing Expenses table",
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      "kind": "title",
      "text": "Ongoing Costs = Ongoing Performance",
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      "text": "Table 6: Retention and Service Expense Allocation",
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