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  "documentTitle": "eHealth Inc. (EHTH)",
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  "authorName": "Carson Block",
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  "sourceTypeLabel": "Short seller",
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      "text": "We see such forecasts as unmitigated accounting aggression by EHTH’s management, who obfuscate with the help of the company’s black-box statistical model.",
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      "text": "We estimate that after factoring in ongoing costs, EHTH cash collections do not even meet the initial receivable booked, to say nothing of the company's later tail revenue adjustments.",
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      "text": "As we detailed (and the promotional management has failed to acknowledge), future collections have associated costs relating to member retention and revenue sharing.",
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      "text": "To calculate cash collections for each member that remains paying, we assume that, consistent with company statements, EHTH's Year One receipts per MA member are 40% of the LTV, paid upfront.",
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      "text": "EHTH assumes an average Medicare Advantage member life of approximately three years when it books revenue for a given customer cohort. However, gross cash inflows take much longer than three years to match the revenue EHTH recognizes.",
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      "text": "Sell-Side Research Q&A with EHTH, March 2020",
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      "text": "Understanding the Cash Collection Timeline",
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