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  "documentTitle": "eHealth Inc. (EHTH)",
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  "authorName": "Carson Block",
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  "notes": "The slide explains the sensitivity of LTV calculations to churn assumptions and provides a methodology for calculating implied churn.",
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      "text": "Over the past two years, MA implied churn has steadily worsened to 47%, which implies a life of only 2.1 years.",
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      "text": "Line chart showing the trend of eHealth Medicare Advantage Churn from 4Q16 to 4Q19.",
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      "text": "ASC 606 Adoption",
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      "text": "churn rate: 47%",
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      "text": "The LTVs are highly sensitive to even small changes in the persistence assumption. Based on the 47.0% implied churn in 2019 MA members, the implied life is 2.1 years.",
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      "text": "To calculate the implied churn rates for each quarter, we use the following formula:",
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      "text": "EHTH 2019 10-K, p. 73",
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      "text": "Table showing Beginning, Approved Applications, Implied Churn, Ending, and Churn % (TTM) from FY16 to FY19.",
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      "text": "Table 2: eHealth Medicare Advantage Churn",
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