2023 Annual Report

To mitigate the challenges associated with this evolving environment, we are taking proactive steps and holding conversations with key stakeholders as we navigate this dynamic and complex regulatory environment. We believe these measures will ensure we remain compliant while optimizing our operations for long-term success.

Revenue Diversification

To achieve sustainable, profitable growth, improve our cash flow generation, and mitigate regulatory risks, eHealth is executing a strategic diversification plan. This initiative aims to:

• Expand Revenue Streams: We launched Amplify, a carrier-dedicated business generating inbound Medicare calls to our licensed advisors, effectively extending carriers' sales reach. This model minimizes marketing spend and boasts attractive margins, contributing to increased revenue and cash flow generation.
• Mitigate Regulatory Risks: Diversification beyond Medicare Advantage lessens dependence on a single market segment, potentially mitigating regulatory risks.
• Unlock New Market Opportunities: We're leveraging our technology, carrier partnerships, and distribution expertise to explore growth opportunities in areas like Medicare Supplement, individual and family plans, and employer plans. While these areas require investments in platform, processes, and teams (following our historical focus on Medicare Advantage), we believe they hold significant long-term potential. We began these strategic investments in 2023 and plan to continue throughout 2024.

Strong Focus on Positive Results, Future Plans

We are committed to improving our capital structure and financial flexibility. Despite a challenging market environment in 2023, we made significant progress by improving our operating cash flow to ($6.7) million for the year, compared to significantly higher levels of cash outflow in previous years. We are confident in our ability to achieve positive operating cash flow for the trailing 12 months ending March 31, 2024, building on this momentum.

This progress, combined with our improving profitability metrics and a strong commission receivable balance exceeding $900 million as of December 31, 2023, positions eHealth for further financial strength. These positive developments broaden our options for strategically reducing our cost of capital in the future. In the meantime, we have ample liquidity to execute our strategic plan in 2024 and beyond.

2023 Financial Results Highlights

• Successfully delivered on our 2023 annual guidance for each metric
• 2023 annual total revenue of $452.9 million compared to 2022 total revenue of $405.4 million (or 12% growth)
• 2023 annual adjusted EBITDA1 of $14.1 million compared to ($41.7) million in 2022
• Operating cash flow of ($6.7) million in 2023, improved from ($162.6) million in 2021 and ($26.9) million in 2022
• Fourth quarter 2023 Medicare Advantage approved members grew 22% year-over- year
• Fourth quarter 2023 Medicare Advantage LTV increased 11% to $1,151
• Ended the year with total contract asset receivable value of $918.2 million
• Ended the year with $121.7 million in cash, equivalents, and marketable securities

2023 Operational Results Highlights

• Created a new brand strategy
• Launched Amplify, our new carrier dedicated fulfillment model
• Executed our largest advisor ramp and achieved record new advisor performance
• Scaled retention strategy for broader impact while personalizing member journey with eHealth
• Completed several important enhancements to user experience in our online marketplace
• Achieved greater employee engagement through career pathing, training opportunities, transparent communication through Town Halls and All Hands meetings and ongoing engagement surveys
• Held first Investor and Analyst Day since 2019

2024 Priorities

In 2024 we plan to maintain our focus on our mission, operational excellence, and shareholder value creation. eHealth addresses a large and growing market opportunity across its key offering and brings a highly differentiated service to our carrier partners and

1 Please see Exhibit 99.1 to our Current Report on Form 8-K filed with the Securities and Exchange Commission on February 27, 2024 for management's definition of adjusted EBITDA, a non-GAAP financial measure, and a reconciliation of adjusted EBITDA to GAAP net income (loss), its most directly comparable GAAP financial measure.

beneficiaries. Our operational 2024 priorities aim to build on this achievement and continue the robust performance we delivered in 2023:

1. Grow revenue year-over-year while producing positive adjusted EBITDA.
2. Advance our local market focused, omni-channel enrollment engine to drive higher conversions and greater margins.
3. Launch the next phase of our member loyalty & retention strategy.
4. Drive our business-to-business strategy and fortify the organizational foundation that supports our strategic partners and direct-to-employer opportunities.
5. Enhance our comprehensive product portfolio beyond Medicare Advantage agency business to drive year-round growth.

When I joined the company in November of 2021, we established a set of important goals and commitments. Through the successful implementation of our business transformation and cost reduction programs, we are fulfilling these commitments as evidenced by our 2023 results. I am also proud to share that in 2023 we helped more than 400,000 Americans enroll in health insurance plans, delivering on Our Mission which is to expertly guide consumers through their health insurance options, when, where, and how they prefer.

As eHealth continues to build momentum in 2024, I am confident in this organization's ability to navigate our dynamic industry and continue solidifying eHealth's position as a gold standard for health insurance distribution. With our 2024 objectives and financial guidance, we are putting forth a new set of commitments to our shareholders, and I am confident in our ability to again deliver on our promises. Thank you for your continued support.

With gratitude,

Fran Soistman

Chief Executive Officer, eHealth Inc.

Forward-LookingStatements:

This letter to our stockholders from our Chief Executive Officer contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995. These include statements regarding our expectations regarding our business, operations and strategy; the impact of our business transformation program on our business and our future cost reduction efforts; the effect of our marketing and branding efforts on our business; our ability to effectively navigate our complex regulatory landscape; our efforts to diversify our revenue streams, mitigate regulatory risk, and unlock new market opportunities, our estimates regarding total membership, Medicare, individual and family plan, ancillary products and small business memberships; our estimates regarding constrained lifetime values of commissions per approved member by product category; our estimates regarding costs per approved member; our guidance for total revenue, GAAP net income (loss), adjusted EBITDA and operating cash flow; the expected impact of positive net adjustment revenue; our ability to grow revenue year-over-year while producing positive adjusted EBITDA, advance our local market focused, omni-channel enrollment engine to drive higher conversions and greater margins, launch the next phase of our member loyalty & retention strategy, drive our B2B strategy and fortify the organizational foundation that supports our strategic partners and direct-to-employer opportunities, and to enhance our comprehensive product portfolio beyond Medicare Advantage agency business to drive year-round growth; and other statements regarding our future operations, financial condition, prospects and business strategies.

These forward-looking statements are inherently subject to risks and uncertainties that could cause our actual results to differ materially from those indicated in these forward-looking statements, including but not limited to risks described in our filings with the Securities and Exchange Commission. For important cautionary language regarding these forward-looking statements, please see the section titled "Cautionary Note Regarding Forward-Looking Statements" in our Annual Report on Form 10-K, included herein. The Company undertakes no obligations to update any forward-looking statements.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

• ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023

OR

• TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____ to ____

Commission file number: 001-33071

_____________________________________________

EHEALTH, INC.

(Exact name of registrant as specified in its charter)

Securities registered pursuant to Section 12(g) of the Act: None

_____________________________________________

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulations S- T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §240.10D-1(b).☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Based on the closing price of the registrant's common stock on the last business day of the registrant's most recently completed second fiscal quarter, which was June 30, 2023, the aggregate market value of its shares (based on a closing price of $8.04 per share) held by non-affiliates was $220.9 million. Shares of the registrant's common stock held by each executive officer and director and by each person who may be deemed to be an affiliate of the registrant have been excluded from this computation. This determination of affiliate status is not necessarily a conclusive determination for other purposes.

The number of shares of the registrant's common stock, par value $0.001 per share, outstanding as of February 23, 2024 was 28,938,509 shares.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant's Definitive Proxy Statement for the 2024 Annual Meeting of Stockholders, which is expected to be filed within 120 days after the Company's fiscal year ended December 31, 2023, are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent stated herein.

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