GoHealth, Inc. (Nasdaq: GOCO), a leading health insurance
marketplace, today announced that it had closed the previously
announced pending acquisition of e-TeleQuote Insurance, Inc., a
distinguished name in the Medicare insurance marketplace. The
transaction closed on September 30, 2024, as anticipated, leaving
GoHealth as the sole owner of e-TeleQuote.
Transaction Details
GoHealth was selected through a competitive process and entered
into a purchase and subscription agreement on August 30, 2024, to
acquire an 18.9% stake in e-TeleQuote. On September 30, 2024,
GoHealth completed the purchase by investing $5 million for newly
issued shares in e-TeleQuote. Concurrently, e-TeleQuote's previous
owner relinquished its 81.1% ownership interest thereby
relinquishing its rights in the company. As a result, GoHealth
became the sole owner of e-TeleQuote, including all its assets,
inclusive of the $5 million paid to e-TeleQuote at the time of the
transaction closing. GoHealth’s unique external agent channel
allowed for a "plug and play," seamless transition and operational
integration, which made the condensed 30-day transaction close
possible.
In addition to over $18 million in cash on the e-TeleQuote
balance sheet, e-TeleQuote holds a substantial contract asset
valued at over $100 million, tied to its Medicare Advantage
business. Furthermore, GoHealth believes e-TeleQuote brings
significant value to GoHealth with its experienced management team
and a workforce of nearly 400 licensed agents.
“We believe the upcoming AEP will present unique industry and
market dynamics, including a reduction in marketing capacity across
the broker industry, combined with strong demand for Medicare
Advantage shopping and appropriate switching. In this highly
attractive marketplace, success hinges on effectively managing
customer acquisition costs—an industry leading capability for
GoHealth. With e-TeleQuote's agent capacity now accessible without
the usual cash outlay for hiring and training, we believe GoHealth
is well-positioned to continue delivering as a leading source of
high-quality enrollments for health plans nationwide," said Vijay
Kotte, CEO of GoHealth.
e-TeleQuote joins GoPartner Solutions (GPS)
Contractually, e-TeleQuote also entered into a commercial
agreement with GoHealth to become a downline under its GoPartner
Solutions (“GPS”) external agent channel. As part of the GPS
agreement, e-TeleQuote will continue to operate as an independent
agency; however, its agents will have the added advantage of
utilizing GoHealth’s proprietary PlanFit tools and access to its
marketing channels. Through this commercial relationship,
e-TeleQuote agents will have access to the efficiency of GoHealth’s
marketing, technology and unique health plan contracts during the
upcoming Annual Enrollment Period.
Annual Enrollment Period (AEP) and Full-Year
Impact
“We are very excited about the value the e-TeleQuote team brings
to GoHealth and we believe it will support innovation while having
a positive impact on our Revenue, Adjusted EBITDA and Cash Flow
from Operations, not just in the fourth quarter, but well into the
future,” said Katie O’Halloran, Interim CFO of GoHealth.
This strategic move marks a major milestone in GoHealth’s
mission to deliver unmatched consumer-centric solutions while
reinforcing the shared values of integrity, empathy, and
accountability between the two companies. In addition to advancing
GoHealth’s mission, this acquisition is intended to strengthen its
position in the market and is expected to drive long-term value
creation for shareholders.
Learn more at www.GoHealth.com
About GoHealth, Inc.
GoHealth is a leading health insurance marketplace and
Medicare-focused digital health company. Enrolling in a health
insurance plan can be confusing for customers, and the seemingly
small differences between plans can lead to significant
out-of-pocket costs or lack of access to critical medicines and
even providers. GoHealth combines cutting-edge technology, data
science and deep industry expertise to build trusted relationships
with consumers and match them with the healthcare policy and
carrier that is right for them. Since its inception, GoHealth has
enrolled millions of people in Medicare plans and individual and
family plans. For more information, visit
https://www.gohealth.com.
About e-TeleQuote Insurance, Inc.
e-TeleQuote is a Medicare Insurance Marketplace which
specializes in helping Medicare Beneficiaries compare Medicare
Advantage and Medicare Supplement plans from top carriers and
enroll in the plan that’s right for them.
Forward-Looking Statements
This release contains forward-looking statements. We intend such
forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements contained in Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements other
than statements of historical facts contained in this press release
may be forward-looking statements. Statements regarding our future
results of operations and financial position, business strategy and
plans and objectives of management for future operations,
including, among others, statements regarding our expected growth,
investment plans, business transformation, e-TeleQuote’s impact on
our business and our ability to successfully integrate
e-TeleQuote’s operations, technologies and employees into our
business are forward-looking statements.
In some cases, you can identify forward-looking statements by
terms, such as "may," "will," "should," "expects," "plans,"
"anticipates," "could," "intends," "targets," "projects,"
"contemplates," "believes," "estimates," "predicts," "potential" or
"continue" or the negative of these terms or other similar
expressions. Accordingly, we caution you that any such
forward-looking statements are not guarantees of future performance
and are subject to risks, assumptions and uncertainties that are
difficult to predict. Although we believe that the expectations
reflected in these forward-looking statements are reasonable as of
the date made, actual results may prove to be materially different
from the results expressed or implied by the forward-looking
statements.
These forward-looking statements speak only as of the date of
this release and are subject to a number of important factors that
could cause actual results to differ materially from those in the
forward-looking statements, including important factors described
in the section titled "Risk Factors" in our 2023 Form 10-K, and the
section titled "Management's Discussion and Analysis of Financial
Condition and Results of Operations" in our Quarterly Report on
Form 10-Q for the quarter ended June 30, 2024, and in our other
filings with the Securities and Exchange Commission. Any
forward-looking statement speaks only as of the date on which it is
made, and, except as otherwise required by law, we do not undertake
any obligation to publicly update or review any forward-looking
statement, whether as a result of new information, future
developments or otherwise. New factors emerge from time to time,
and it is not possible for us to predict which will arise. In
addition, we cannot assess the impact of each factor on our
business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those
contained in any forward-looking statements.
Media Inquiries
pressinquiries@gohealth.com
Investor Relations
jshave@gohealth.com
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