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  "documentTitle": "eHealth Inc. (EHTH)",
  "authorId": "51_Muddy_Waters",
  "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": "Includes a table showing eHealth Medicare Advantage Churn metrics from FY16 to FY19.",
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      "kind": "callout",
      "text": "We believe that EHTH uses an overly optimistic MA member persistence assumption, which has a material impact on profitability (or lack thereof) of an enrollee.",
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      "text": "Three years for MA plans; Five years for Medicare Part D prescription drug plans; Five years for Medicare Supplement plans",
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      "text": "Churn % (TTM): 47%",
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      "text": "The Company estimates member persistence in order to calculate its health insurance plan LTVs. Among these estimates are:",
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      "kind": "paragraph",
      "text": "We believe that EHTH uses an overly optimistic MA member persistence assumption... We believe the combination of using a three-year life and then booking additional commission revenue for tail customers overstates expected future cash collections.",
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      "text": "EHTH 2019 10-K, p. 66; November 2019 presentation, p. 33.",
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      "kind": "title",
      "text": "Aggressive LTV Life Assumptions",
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