eHealth's Medicare Index Report for 2021 Coverage Tracks Increasing Popularity of Medicare Advantage Plans

Rhea-AI Summary

eHealth, Inc. (NASDAQ: EHTH) released its Medicare Index Report for 2021, highlighting significant trends among Medicare beneficiaries during the Annual Enrollment Period (AEP). For 2021, 77% of eHealth's Medicare customers selected Medicare Advantage plans, a notable increase from 61% in 2020. Additionally, 86% of beneficiaries chose $0 premium plans, contributing to a 71% decrease in average premiums since 2018, with an average monthly premium of $5. The report is based on over 298,000 applications submitted during the AEP from October 15 to December 7, 2020.

Positive

• 77% of eHealth's Medicare customers selected Medicare Advantage plans for 2021, up from 61% in 2020.
• 86% of beneficiaries chose $0 premium plans, indicating strong interest in cost-effective options.
• Average premiums for Medicare Advantage plans decreased to $5, down 71% since 2018.

Negative

• None.

SANTA CLARA, Calif., Feb. 23, 2021 /PRNewswire/ -- Today eHealth, Inc. (NASDAQ: EHTH) (eHealth.com) released an analysis of costs and trends among Medicare beneficiaries selecting Medicare insurance plans through eHealth during the Annual Enrollment Period (AEP) for 2021 coverage, with a special focus on trends among beneficiaries selecting Medicare Advantage plans.

"The increasing popularity of Medicare Advantage is one of the best illustrations of successful private/public cooperation in the health care sector today," said eHealth CEO Scott Flanders. "Over the years, competition and innovation among private insurers offering Medicare Advantage plans has brought down average premiums while increasing benefits, and enthusiastic beneficiaries are responding by enrolling in ever greater numbers, as our Medicare Index Report shows."

Highlights from the report:

• For 2021, the percent of beneficiaries selecting Medicare Advantage plans at eHealth increased across all age bands: 77% of eHealth's Medicare customers chose Medicare Advantage plans during the AEP for 2021 coverage, compared to 61% the year before.
• Nearly nine in ten Medicare Advantage enrollees selected $0 premium plans: 86% of eHealth customers selecting Medicare Advantage plans during the AEP for 2021 coverage chose plans with a $0 monthly premium, compared to 83% for 2020, 73% for 2019, and 63% for 2018.
• Average premiums for Medicare Advantage plans have decreased 71% since 2018: $5 was the average monthly premium for Medicare Advantage plans selected at eHealth during the AEP for 2021 coverage, as increased enrollment in $0 premium plans continued to drive down average costs.

Read the full report.

eHealth's findings are based on more than 298,000 submitted applications for Medicare insurance products received by eHealth during the AEP for 2021 coverage, which occurred from October 15 through December 7, 2020, with data from the prior three AEPs provided for comparison. Only plan selections by eHealth customers are considered in this report.

Medicare Advantage plans are offered by private companies contracting with Medicare to provide beneficiaries' Medicare Part A and Part B coverage; most also provide prescription drug coverage and other benefits.

No information relevant to eHealth's financial performance should be drawn from this report. Similar to other insurance brokers, eHealth is compensated on a fixed per-member basis for Medicare Advantage and Part D plans, as regulated by the Centers for Medicare and Medicaid Services, and on a percentage of premium basis for most Medicare Supplement plans.

About eHealth

eHealth, Inc. (NASDAQ: EHTH) operates a leading health insurance marketplace at eHealth.com and eHealthMedicare.com with technology that provides consumers with health insurance enrollment solutions. Since 1997, we have connected more than 8 million members with quality, affordable health insurance, Medicare options, and ancillary plans. Our proprietary marketplace offers Medicare Advantage, Medicare Supplement, Medicare Part D prescription drug, individual, family, small business and other plans from over 180 health insurance carriers across fifty states and the District of Columbia.

Media inquiries, please contact:
Lara Sasken
Vice President, Corporate Communications
lara.sasken@ehealth.com

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SOURCE eHealth, Inc.

FAQ

What are the key findings from eHealth's Medicare Index Report for 2021?

eHealth's report indicates that 77% of its Medicare customers chose Medicare Advantage plans for 2021, with 86% selecting $0 premium plans and average premiums dropping to $5.

How has the enrollment in Medicare Advantage plans changed according to eHealth?

Enrollment in Medicare Advantage plans increased significantly, with 77% selection during the 2021 AEP compared to 61% in 2020.

What percentage of eHealth's customers selected $0 premium Medicare Advantage plans for 2021?

For 2021, 86% of eHealth's customers opted for Medicare Advantage plans with $0 monthly premiums.

What does the average premium for Medicare Advantage plans look like for 2021 according to eHealth?

The average monthly premium for Medicare Advantage plans chosen at eHealth in 2021 is $5, reflecting a 71% decrease since 2018.

What was the duration of the Annual Enrollment Period (AEP) for 2021 Medicare coverage?

The AEP for 2021 coverage ran from October 15 to December 7, 2020.