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  "docId": "019dd923-622c-750b-8b97-0bf66d39ad6e",
  "docSlug": "b4cdf04ed0fb",
  "documentTitle": "eHealth Inc. (EHTH)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson Block",
  "documentKindSlug": "research-note",
  "documentKindLabel": "Research note",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-04-08 00:00:00",
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  "pageNumber": 13,
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  "density": "dense",
  "nDataPoints": 40,
  "notes": "The slide uses a forensic accounting approach to re-calculate unit economics, contradicting management's growth narrative.",
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      "kind": "callout",
      "text": "When including annual fixed costs in the calculation, we estimate the company will lose -$402 on every MA customer.",
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      "text": "Contribution Margin: -$402",
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      "kind": "paragraph",
      "text": "On a unit basis, we conclude the EHTH's MA business is significantly loss-generating. Rather than reflecting 'investment for growth', we believe that EHTH's greatly increasing cash burn shows how value destructive EHTH's pursuit of MA member growth at breakneck speed is.",
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      "kind": "paragraph",
      "text": "EHTH management has consistently been unable to meet its forecasts of when the company will generate positive operating cash flow. These repeated misses and the resulting cash incineration show the value destruction that is occurring through EHTH's pursuit of growth at all costs.",
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      "kind": "table",
      "text": "Impact of Ongoing Partnership Revenue Share on LTV and Costs table",
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      "kind": "table",
      "text": "Table 9: eHealth MA Unit Economics Inclusive of Fixed Costs",
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      "text": "Table 8: eHealth MA Unit Economics",
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      "kind": "title",
      "text": "EHTH's Medicare Advantage Business is Actually Unprofitable",
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      "evidence": "The report presents a valuation table showing the cost of inaction for EHTH's investors",
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      "objective": "What is the cost of inaction for EHTH's investors?",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
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      "description": "Quantify what happens if the audience does nothing"
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