Web Broker Says Individual Health Is Still Broken

EHealth has been increasing sales of Medicare plans, and of major medical plans to very small plans, but it still depends heavily on sales of individual major medical coverage.

Individual and family plan enrollment fell to 244,900, from 481,300 a year earlier, and commission revenue for those enrollees fell to $17 million, from $28 million.

EHealth is preparing to introduce a web-based small-group health plan enrollment system for UnitedHealth Group Inc. in August

The company also has some hope for improvement in individual major medical operations.

The underlying market is still in turmoil, but managers of HealthCare.gov are hoping to let web brokers enroll consumers directly in the Affordable Care Act exchange plan subsidy programs, without requiring those consumers to shift to the HealthCare.gov website, executives said.

HealthCare.gov managers are also planning to reduce advertising spending, executives said. EHealth executives are hoping that change will give outside web brokers a chance to increase exchange plan sales.

— Check out A Q2 Insurance Earnings Release Guide for Agents on ThinkAdvisor.