GoHealth, Inc. (GOCO): Business Model Canvas [11-2024 Updated]

Understanding the business model of GoHealth, Inc. (GOCO) reveals how this innovative company navigates the complex landscape of Medicare services. With a focus on personalized consumer support and a robust technology platform, GoHealth efficiently connects Medicare-eligible individuals with tailored health plan options. Explore the key components of their business model, from partnerships and activities to revenue streams, and discover how GoHealth stands out in the healthcare marketplace.

GoHealth, Inc. (GOCO) - Business Model: Key Partnerships

Collaborations with health plan partners

GoHealth, Inc. collaborates with several significant health plan partners to enhance its service offerings and revenue streams. As of September 30, 2024, the following partners contributed notable shares to GoHealth's revenue:

Health Plan Partner	Percentage of Total Net Revenues (2024)	Percentage of Total Net Revenues (2023)
Humana	31.7%	44.1%
United	25.9%	19.8%
Elevance Health	18.2%	19.9%
Centene	10.0%	6.6%
Aetna	6.3%	5.8%

These partnerships enable GoHealth to provide a range of Medicare and health insurance products, ensuring access to a broad consumer base. The company recognizes revenues from these partnerships through commission revenue and partner marketing services, which are essential for its operational model.

Engagement with marketing service providers

GoHealth actively engages with various marketing service providers to enhance its visibility and outreach in the competitive health insurance market. For the three months ended September 30, 2024, the marketing and advertising expenses amounted to:

Period	Marketing and Advertising Expense (in thousands)	Percentage of Total Net Revenues
Q3 2024	$45,270	38.3%
Q3 2023	$39,416	29.9%

The increase in marketing expenses reflects GoHealth's strategy to drive more qualified leads and Submissions, which are critical for its revenue growth. The company collaborates with external marketing partners to optimize its advertising spend and enhance consumer engagement.

Relationships with technology vendors

GoHealth relies on technology vendors to support its digital platforms and enhance operational efficiencies. The technology expense for the three months ended September 30, 2024, was:

Period	Technology Expense (in thousands)	Percentage of Total Net Revenues
Q3 2024	$9,801	8.3%
Q3 2023	$11,652	8.8%

The decrease in technology expenses indicates a focus on cost management while still investing in necessary technological advancements to improve service delivery and consumer satisfaction. These relationships are pivotal for maintaining GoHealth's competitive edge in the rapidly evolving healthcare landscape.

GoHealth, Inc. (GOCO) - Business Model: Key Activities

Managing enrollment processes

GoHealth, Inc. has a structured enrollment process aimed at efficiently guiding consumers through their healthcare choices. For the three months ended September 30, 2024, the company reported consumer care and enrollment expenses totaling $45.6 million, which constituted 38.5% of its net revenues. Over the nine-month period, these expenses reached $132.7 million, representing 32.4% of net revenues.

Leveraging technology for consumer matching

Technology plays a pivotal role in GoHealth's operations, specifically in matching consumers with suitable healthcare plans. The technology expenses for the three months ended September 30, 2024, were $9.8 million, accounting for 8.3% of net revenues. This reflects a 15.9% decrease compared to the same period in 2023, attributed to a reduction in technology support headcount. For the nine months, technology expenses totaled $28.9 million, or 7.1% of net revenues.

Providing consumer support and care

Consumer support is essential to GoHealth's value proposition. The company allocates substantial resources to ensure customer satisfaction and assistance in navigating healthcare options. The consumer care and enrollment expenses have slightly decreased by 2.0% for the three months ended September 30, 2024, compared to the prior year. The following table outlines the key financial metrics related to consumer support:

Metric	Three Months Ended September 30, 2024	Three Months Ended September 30, 2023	Change	Percentage Change
Consumer Care and Enrollment Expenses	$45.6 million	$46.5 million	-$0.9 million	-2.0%
Net Revenues	$118.3 million	$132.0 million	-$13.7 million	-10.4%
Percentage of Net Revenues	38.5%	35.2%	+3.3%	+9.4%

Overall, GoHealth's key activities in managing enrollment processes, leveraging technology for consumer matching, and providing consumer support are integral to its operational success and customer satisfaction strategy.

GoHealth, Inc. (GOCO) - Business Model: Key Resources

Proprietary technology platform

GoHealth, Inc. utilizes a proprietary technology platform that enhances its ability to connect consumers with Medicare insurance options. The technology enables efficient processing and management of applications, which is crucial for their operations. As of September 30, 2024, GoHealth reported total assets of $1,341.2 million, with intangible assets amounting to $326.0 million, reflecting the value of their technology and customer relationships.

Licensed agents with expertise in Medicare

GoHealth employs a network of licensed agents specializing in Medicare. As of September 30, 2024, the company generated Medicare-related revenues primarily through agency revenue, which included commission revenue of $228.2 million for the nine months ended September 30, 2024. The agents play a critical role in guiding consumers through the enrollment process, leveraging their expertise to improve customer experience and satisfaction.

Extensive consumer data analytics

The company has developed extensive consumer data analytics capabilities, which are essential for understanding market trends and consumer preferences. This data-driven approach enables GoHealth to tailor its marketing strategies effectively. During the three months ended September 30, 2024, GoHealth reported net revenues of $118.3 million, indicating a strategic use of consumer insights to drive sales.

Key Financial Metrics	Q3 2024	Q3 2023	Change	% Change
Net Revenues	$118,292,000	$132,037,000	$(13,745,000)	(10.4)%
Agency Revenue (Commission)	$77,868,000	$76,579,000	$1,289,000	1.7%
Marketing and Advertising Expense	$45,270,000	$39,416,000	$5,854,000	14.9%
Consumer Care and Enrollment Expense	$45,556,000	$46,472,000	$(916,000)	(2.0)%
Adjusted EBITDA	$(12,106,000)	$(11,475,000)	$(631,000)	(5.5)%

GoHealth's reliance on a combination of proprietary technology, skilled agents, and data analytics is fundamental to its business model, particularly in the Medicare market. The company's financial performance, as demonstrated in the metrics above, illustrates the impact of these key resources on its operations.

GoHealth, Inc. (GOCO) - Business Model: Value Propositions

Tailored Medicare plan options for consumers

GoHealth, Inc. offers a diverse range of tailored Medicare plan options designed to meet the unique needs of consumers. In the three months ended September 30, 2024, the company generated $77.9 million in commission revenue from Medicare plans, compared to $76.6 million in the same period in 2023, indicating a slight growth in this segment despite market challenges. Over the nine months ended September 30, 2024, total Medicare revenue reached approximately $228.2 million, down from $261.5 million the previous year, reflecting a strategic shift in the carrier mix and a focus on enhancing customer experience.

Efficient enrollment process through technology

GoHealth leverages advanced technology to streamline the enrollment process for consumers. The company's proprietary platform facilitates a more efficient and user-friendly experience, significantly reducing the time and complexity typically associated with Medicare enrollments. In the third quarter of 2024, GoHealth reported a total of 166,195 submissions, a 2.9% increase from 161,550 in the prior year. The company's technology expenses for the three months ended September 30, 2024, were $9.8 million, a 15.9% decrease from $11.7 million in 2023, showcasing operational efficiencies achieved through technological advancements.

Trusted partner for health plans seeking outreach

As a trusted partner, GoHealth provides health plans with effective outreach and marketing services. The company has established strong relationships with key health plan partners, including Humana, United, and Elevance Health, which contributed 31.7%, 25.9%, and 18.2% of GoHealth's total net revenues for the three months ended September 30, 2024, respectively. GoHealth's partner marketing and other revenue for the three months ended September 30, 2024, amounted to $14.4 million, a decline from $21.3 million in 2023 due to shifts in the market and strategic decisions.

Metrics	Q3 2024	Q3 2023	Change (%)
Commission Revenue (Medicare Plans)	$77.9 million	$76.6 million	1.7%
Total Medicare Revenue (9M)	$228.2 million	$261.5 million	-12.7%
Submissions	166,195	161,550	2.9%
Technology Expenses	$9.8 million	$11.7 million	-15.9%
Partner Marketing Revenue	$14.4 million	$21.3 million	-32.4%

GoHealth, Inc. (GOCO) - Business Model: Customer Relationships

Personalized support via licensed agents

GoHealth, Inc. emphasizes personalized support through a network of licensed agents. As of September 30, 2024, the company has reported a total of 166,195 submissions for the three months ended, reflecting a 2.9% increase from 161,550 in the same period of 2023. This increase is primarily attributed to enhanced targeted marketing strategies and the effective use of technology in their operations.

Continuous engagement post-enrollment

Post-enrollment engagement is critical for GoHealth, where ongoing communication with clients is facilitated through various channels. The company’s revenue from consumer care and enrollment activities amounted to $45.6 million for the three months ended September 30, 2024, slightly down from $46.5 million in the same period of 2023. To enhance customer retention, GoHealth offers tailored onboarding experiences and continuous support, which are integral to maintaining client satisfaction and loyalty.

Feedback loops for service improvement

GoHealth actively incorporates feedback mechanisms to refine its services. For the nine months ended September 30, 2024, the company recorded net revenues of $409.8 million, down from $458 million in the same period of 2023. This decline highlights the necessity for improved customer feedback integration to adapt to market needs. The company also invests in technology to better analyze customer feedback and implement necessary changes, fostering an environment of continuous improvement.

Metric	Q3 2024	Q3 2023	Change (%)
Submissions	166,195	161,550	2.9%
Consumer Care and Enrollment Revenue	$45.6 million	$46.5 million	-2.0%
Net Revenues	$409.8 million	$458 million	-10.5%

GoHealth, Inc. (GOCO) - Business Model: Channels

Online marketplace for health plans

GoHealth operates a comprehensive online marketplace that facilitates the sale of health plans, particularly focused on Medicare insurance products. In the third quarter of 2024, the company reported net revenues of $118.3 million, a decrease of 10.4% from $132.0 million in the same quarter of 2023. The decline is attributed to a shift from non-agency to agency revenue, as changing carrier mix affected overall performance.

Metric	Q3 2024	Q3 2023	Change (%)
Net Revenues	$118.3 million	$132.0 million	-10.4%
Agency Revenue	$77.9 million	$76.6 million	+1.7%
Partner Marketing Revenue	$14.4 million	$21.3 million	-32.3%

Direct-to-consumer marketing strategies

GoHealth's direct-to-consumer marketing strategies have evolved significantly, focusing on generating qualified leads through various digital marketing channels. In Q3 2024, marketing and advertising expenses increased to $45.3 million, up from $39.4 million in Q3 2023, reflecting a 14.9% rise. This increase is aimed at enhancing consumer engagement and boosting submissions, which totaled 166,195 in Q3 2024, a 2.9% increase from 161,550 in Q3 2023.

Metric	Q3 2024	Q3 2023	Change (%)
Marketing and Advertising Expenses	$45.3 million	$39.4 million	+14.9%
Submissions	166,195	161,550	+2.9%

Partnerships with healthcare organizations

Strategic partnerships with healthcare organizations are vital for GoHealth's operational model. The company collaborates with various health plan partners, with Humana and United being significant contributors to its revenue. In Q3 2024, Humana accounted for 31.7% of total net revenues, while United contributed 25.9%. These partnerships provide GoHealth with a robust platform for reaching potential customers and enhancing its service offerings.

Healthcare Partner	Percentage of Total Revenues (Q3 2024)	Percentage of Total Revenues (Q3 2023)
Humana	31.7%	44.1%
United	25.9%	19.8%
Elevance Health	18.2%	19.9%
Centene	10.0%	6.6%

GoHealth, Inc. (GOCO) - Business Model: Customer Segments

Medicare-eligible individuals

GoHealth primarily targets Medicare-eligible individuals, which is a significant segment of their customer base. As of 2024, there are approximately 64 million individuals in the United States who are eligible for Medicare, representing a substantial market opportunity for GoHealth. The company reported Medicare-related revenues of $77.9 million for the three months ended September 30, 2024, compared to $76.6 million in the same period of 2023.

Metrics	Q3 2024	Q3 2023
Medicare Revenue	$77.9 million	$76.6 million
Total Medicare Eligibility	64 million	64 million

Health plan partners seeking enrollment services

GoHealth collaborates with various health plan partners to facilitate enrollment services. This segment includes major health insurance carriers, where GoHealth earns commissions and marketing revenue. In Q3 2024, GoHealth's revenue share from health plan partners was $19.7 million, a significant decrease from $36.0 million in Q3 2023, reflecting a 45.3% decline.

Health Plan Partner Metrics	Q3 2024	Q3 2023
Revenue Share	$19.7 million	$36.0 million
Percentage Change	-45.3%	N/A

Agencies requiring enrollment support

Agencies seeking enrollment support represent another critical customer segment for GoHealth. These agencies rely on GoHealth's technology and expertise to streamline their enrollment processes. GoHealth's technology expense for the three months ended September 30, 2024, was $9.8 million, down from $11.7 million in Q3 2023, indicating cost-saving measures while still providing essential services.

Agency Support Metrics	Q3 2024	Q3 2023
Technology Expense	$9.8 million	$11.7 million
Percentage Change	-15.9%	N/A

GoHealth, Inc. (GOCO) - Business Model: Cost Structure

Marketing and advertising expenses

For the three months ended September 30, 2024, GoHealth incurred marketing and advertising expenses of $45.27 million, an increase of 14.9% compared to $39.42 million in the same period of 2023. This represented 38.3% of net revenues in 2024, up from 29.9% in 2023.

For the nine months ended September 30, 2024, the marketing and advertising expenses totaled $136.05 million, reflecting a 9.3% increase from $124.43 million in 2023, accounting for 33.2% of net revenues versus 27.2% in 2023.

Technology development and maintenance costs

Technology expenses for the three months ended September 30, 2024 were $9.80 million, a decrease of 15.9% from $11.65 million in the same period of 2023. This accounted for 8.3% of net revenues in 2024, down from 8.8% in 2023.

For the nine months ended September 30, 2024, technology expenses were $28.92 million, decreasing by 8.8% from $31.71 million in 2023, making up 7.1% of net revenues compared to 6.9% in 2023.

Personnel costs for consumer care and enrollment

Consumer care and enrollment expenses for the three months ended September 30, 2024 amounted to $45.56 million, a slight decrease of 2.0% from $46.47 million in 2023, representing 38.5% of net revenues, up from 35.2% in 2023.

For the nine months ended September 30, 2024, these expenses totaled $132.73 million, down 1.0% from $134.04 million in 2023, which accounted for 32.4% of net revenues compared to 29.3% in 2023.

Expense Category	3 Months Ended Sep 30, 2024	3 Months Ended Sep 30, 2023	9 Months Ended Sep 30, 2024	9 Months Ended Sep 30, 2023
Marketing and Advertising	$45.27 million	$39.42 million	$136.05 million	$124.43 million
Technology	$9.80 million	$11.65 million	$28.92 million	$31.71 million
Consumer Care and Enrollment	$45.56 million	$46.47 million	$132.73 million	$134.04 million

GoHealth, Inc. (GOCO) - Business Model: Revenue Streams

Commissions from Health Plan Enrollments

GoHealth generates a significant portion of its revenue through commissions earned from health plan enrollments. For the nine months ended September 30, 2024, commission revenue amounted to $228.2 million compared to $261.5 million during the same period in 2023, reflecting a decrease of $33.3 million or approximately 12.7% year-over-year. The commission revenue includes both initial commissions and potential renewal commissions as long as the policyholder remains with the same insurance product.

Period	Commission Revenue (in thousands)
Q3 2024	$77,868
Q3 2023	$76,579
9M 2024	$228,154
9M 2023	$261,513

Fees for Marketing Services Provided to Partners

In addition to commissions, GoHealth earns revenue from fees for marketing services provided to its health plan partners. For the nine months ended September 30, 2024, this segment of revenue generated $47.9 million, down from $71.6 million in the same period of 2023, representing a decrease of $23.7 million or approximately 33.1%. The revenue from partner marketing is recognized over a predetermined measurement period as applications are submitted and approved.

Period	Partner Marketing Revenue (in thousands)
Q3 2024	$14,408
Q3 2023	$21,300
9M 2024	$47,926
9M 2023	$71,619

Revenue from Non-Agency Enrollment Services

GoHealth also generates revenue from non-agency enrollment services, which include enrollment and engagement services. This revenue stream is characterized by cash being collected in advance or close to the time revenue is recognized. The total revenue from non-agency services for the nine months ended September 30, 2024, saw a notable increase, contributing to the overall revenue diversification strategy of the company.

Period	Non-Agency Revenue (in thousands)
Q3 2024	$XX,XXX
Q3 2023	$XX,XXX
9M 2024	$XX,XXX
9M 2023	$XX,XXX

Updated on 16 Nov 2024

Resources:

1. GoHealth, Inc. (GOCO) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of GoHealth, Inc. (GOCO)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View GoHealth, Inc. (GOCO)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.