^[1],[2]

$ 40,293

$ 61,781

^[1]

1,475

1,948

^[1]

109,666

104,726

^[1]

4,305

4,077

^[1]

155,739

172,532

^[1]

169,751

153,051

^[1]

4,705

5,608

^[1]

7,287

3,807

^[1]

7,540

8,580

^[1]

14,096

^[1]

359,118

357,674

^[1]

3,246

5,112

^[1]

15,498

10,920

^[1]

4,693

8,058

^[1]

2,008

1,648

^[1]

25,445

25,738

^[1]

45,089

75,403

Preferred stock: $0.001 par value; Authorized shares: 10,000,000; Issued and outstanding shares: none

^[1]

1,920

4,253

Stockholders’ equity:

^[1]

Common stock: $0.001 par value; Authorized shares: 100,000,000; Issued shares: 29,492,141 and 29,879,952 at December 31, 2016 and 2017, respectively; Outstanding shares: 18,356,551 and 18,641,957 at December 31, 2016 and 2017, respectively

^[1]

Treasury stock, at cost: 11,135,590 and 11,237,995 shares at December 31, 2016 and 2017, respectively

^[1]

281,706

272,778

^[1]

(199,998)

^[1]

204,724

179,298

^[1]

202

173

^[1],[3]

286,664

252,280

^[1]

$ 359,118

$ 357,674

[1]	As adjusted for the adoption of ASC 606 using the full retrospective method
[2]	As adjusted for the adoption of ASC 606 using the full retrospective method
[3]	As adjusted for the adoption of ASC 606 using the full retrospective method

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Preferred Stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Outstanding	0	0
Common Stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares, Issued	29,879,952	29,492,141
Common Stock, Shares, Outstanding	18,641,957	18,356,551
Treasury Stock, Shares	11,237,995	11,135,590

Consolidated Statements of Comprehensive Loss - USD ($)
shares in Thousands, $ in Thousands

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Revenue:

^[1]

$ 176,883

$ 177,234

$ 184,933

^[1]

13,823

16,090

18,414

^[1]

190,706

193,324

203,347

^[1]

582

862

1,947

^[1]

65,874

72,213

75,571

^[1]

59,183

48,718

43,159

^[1]

32,889

32,749

36,351

^[1]

39,969

35,216

30,239

Restructuring charge (benefit)

^[1]

621

^[1]

(297)

4,541

^[1],[2]

1,040

1,153

^[1]

200,158

190,501

192,961

^[1]

(9,452)

2,823

10,386

Income (loss) before provision (benefit) for income taxes

^[1]

1,182

1,149

1,285

^[1]

(8,270)

3,972

11,671

^[1]

(33,696)

3,668

7,707

Diluted (in usd per share)

^[1],[2],[3]

$ 25,426

$ 304

$ 3,964

Net income per share:

Basic (in usd per share)

^[1]

$ 1.37

$ 0.02

$ 0.22

^[1]

$ 1.33

$ 0.02

$ 0.22

Weighted-average number of shares used in per share amounts:

Basic (in shares)

^[1]

18,512

18,272

18,008

Diluted (in shares)

^[1]

19,047

18,314

18,086

Foreign currency translation adjustment, net of taxes

^[1],[3]

$ 29

$ (23)

$ 18

Comprehensive income

^[1]

$ 25,455

$ 281

$ 3,982

[1]	As adjusted for the adoption of ASC 606 using the full retrospective method
[2]	As adjusted for the adoption of ASC 606 using the full retrospective method
[3]	As adjusted for the adoption of ASC 606 using the full retrospective method

Consolidated Statements of Stockholders' Equity - USD ($)
shares in Thousands, $ in Thousands

Total

^[1]

Common Stock

Additional Paid-in Capital

Treasury Stock

Retained Earnings

Accumulated Other Comprehensive Income

Balance, shares at Dec. 31, 2014

28,776

(10,946)

Beginning Balance at Dec. 31, 2014

$ 224,504

$ 29

$ 259,007

$ (199,998)

$ 165,288

$ 178

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Issuance of common stock in connection with exercise of common stock options and release of vested restricted stock units, net of cash used to net settle equity awards, shares

395

(80)

Issuance of common stock in connection with exercise of common stock options and release of vested restricted stock units, net of cash used to net settle equity awards

662

$ 0

662

Foreign currency translation adjustment, net of taxes

7,030

^[2]

Balance, shares at Dec. 31, 2015

3,964

^[2],[3]

3,964

29,171

(11,026)

Ending Balance at Dec. 31, 2015

236,178

$ 29

266,699

$ (199,998)

169,252

196

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Issuance of common stock in connection with exercise of common stock options and release of vested restricted stock units, net of cash used to net settle equity awards, shares

321

(110)

Issuance of common stock in connection with exercise of common stock options and release of vested restricted stock units, net of cash used to net settle equity awards

(1,187)

$ 0

(1,187)

Foreign currency translation adjustment, net of taxes

7,266

(23)

^[2]

(23)

Balance, shares at Dec. 31, 2016

304

^[2],[3]

304

29,492

(11,136)

Ending Balance at Dec. 31, 2016

252,280

^[4]

$ 29

272,778

$ (199,998)

179,298

173

Increase (Decrease) in Stockholders' Equity [Roll Forward]

Cumulative effect of adoption of ASU 2016-09 | Accounting Standards Update 2016-09 [Member]

9,742

Issuance of common stock in connection with exercise of common stock options and release of vested restricted stock units, net of cash used to net settle equity awards, shares

388

(102)

Issuance of common stock in connection with exercise of common stock options and release of vested restricted stock units, net of cash used to net settle equity awards

(765)

$ 1

(766)

Foreign currency translation adjustment, net of taxes

9,694

^[2]

Balance, shares at Dec. 31, 2017

25,426

^[2],[3]

25,426

29,880

(11,238)

Ending Balance at Dec. 31, 2017

$ 286,664

^[4]

$ 30

$ 281,706

$ (199,998)

$ 204,724

$ 202

[1]	As adjusted for the adoption of ASC 606 using the full retrospective method
[2]	As adjusted for the adoption of ASC 606 using the full retrospective method
[3]	As adjusted for the adoption of ASC 606 using the full retrospective method
[4]	As adjusted for the adoption of ASC 606 using the full retrospective method

Consolidated Statements of Cash Flows - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

^[1],[2],[3]

$ 25,426

$ 304

$ 3,964

^[3]

2,837

3,539

4,148

^[3]

1,464

936

627

^[1],[3]

1,040

1,153

^[3]

9,694

7,266

7,002

^[3]

(30,341)

4,652

8,651

Changes in operating assets and liabilities:

^[3]

(101)

(143)

106

^[3]

473

1,563

(1,050)

^[3]

(21,640)

(8,032)

(15,050)

^[3]

(1,933)

(486)

997

^[3]

(1,866)

2,227

(2,949)

^[3]

4,578

(3,466)

6,180

^[3]

(3,365)

(3,906)

1,865

^[3]

(466)

587

(770)

Accrued expense and other liabilities

^[3]

(433)

433

^[3]

(1,341)

(1,565)

(1,611)

Net cash provided by (used in) operating activities

^[3]

(15,541)

4,083

13,696

Investing activities

Capitalized Computer Software, Additions

^[3]

(3,210)

(1,837)

(1,117)

Purchases of property and equipment and other assets

^[3]

(1,868)

(1,889)

(1,879)

Net cash used in investing activities

^[3]

(5,078)

(3,726)

(2,996)

Financing activities

Net proceeds from exercise of common stock options

^[3]

1,037

1,572

Cash used to net-share settle equity awards

^[3]

(1,802)

(1,248)

(922)

Principal payments in connection with capital leases

^[3]

(105)

(83)

(73)

Net cash provided by (used in) financing activities

^[3]

(870)

(1,269)

577

Effect of exchange rate changes on cash and cash equivalents

^[3]

(17)

Net increase (decrease) in cash and cash equivalents

^[3]

(21,488)

(929)

11,295

Cash and cash equivalents at beginning of period

^[3]

61,781

^[4]

62,710

51,415

Cash and cash equivalents at end of period

^[3]

40,293

^[4]

61,781

^[4]

62,710

Capital lease obligations incurred

^[3]

156

Cash paid for interest

^[3]

Cash paid for income taxes, net of refunds

^[3]

$ 219

$ 628

$ 6

[1]	As adjusted for the adoption of ASC 606 using the full retrospective method
[2]	As adjusted for the adoption of ASC 606 using the full retrospective method
[3]	As adjusted for the adoption of ASC 606 using the full retrospective method
[4]	As adjusted for the adoption of ASC 606 using the full retrospective method

Summary of Business and Significant Accounting Policies

12 Months Ended

Dec. 31, 2017

Summary Of Business And Significant Accounting Policies

Summary of Business and Significant Accounting Policies

Description of Business — eHealth, Inc. (the “Company,” “eHealth,” “we” or “us”) is a leading private health insurance exchange for individuals, families and small businesses in the United States. Through our website addresses (www.eHealth.com, www.eHealthInsurance.com, www.eHealthMedicare.com, www.Medicare.com, www.PlanPrescriber.com and www.GoMedigap.com), consumers can get quotes from leading health insurance carriers, compare plans side-by-side, and apply for and purchase Medicare-related, individual and family, small business and ancillary health insurance plans. We actively market the availability of Medicare-related insurance plans and offer Medicare plan comparison tools and educational materials for Medicare-related insurance plans, including Medicare Advantage, Medicare Supplement and Medicare Part D prescription drug plans. Our ecommerce technology also enables us to deliver consumers’ health insurance applications electronically to health insurance carriers. We are licensed to market and sell health insurance in all 50 states and the District of Columbia.

Adoption of New Accounting Standard — Effective January 1, 2018, we adopted the requirements of Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606), as discussed in detail below under Adoption of New Accounting Standards using the full retrospective method, which requires adjusting prior periods as if Topic 606 had been in effect as of the beginning of the earliest period presented. Thus, the accompanying consolidated balance sheets as of December 31, 2017 and 2016 as well as the accompanying statements of comprehensive income, stockholders’ equity, and cash flows for the years ended December 31, 2017, 2016, and 2015 have been adjusted to reflect the adoption of Topic 606 as have all related disclosures, including segment information. See “Revenue Recognition” below for additional information on ASU 2014-09 and Note 10 “Adoption Impact of New Revenue Standard” for further discussion of the adoption and the impact on our previously reported historical results.

Principles of Consolidation — The consolidated financial statements include the accounts of eHealth, Inc. and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles.

Operating Segments — We report segment information based on how our chief executive officer, who is our chief operating decision maker ("CODM"), regularly reviews our operating results, allocates resources and makes decisions regarding our business operations. The performance measures of our segments include total revenue and profit (loss). Our business structure is comprised of two operating segments:

•Medicare and

•Individual, Family and Small Business

The Medicare segment consists primarily of commissions earned from our sale of Medicare-related health insurance plans, including Medicare Advantage, Medicare Supplement and Medicare Part D prescription drug plans, and to a lesser extent, ancillary products sold to our Medicare-eligible customers, including but not limited to, dental and vision insurance, as well as our advertising program that allows Medicare-related carriers to purchase advertising on a separate website developed, hosted and maintained by us and our delivery and sale to third parties of Medicare-related health insurance leads generated by our ecommerce platforms and our marketing activities.

The Individual, Family and Small Business segment consists primarily of commissions earned from our sale of individual and family and small business health insurance plans and ancillary products sold to our non-Medicare-eligible customers, including but not limited to, dental, vision, life, short term disability and long term disability insurance. To a lesser extent, the Individual, Family and Small Business segment consists of amounts earned from our online sponsorship program that allows carriers to purchase advertising space in specific markets in a sponsorship area on our website, our licensing to third parties the use of our health insurance ecommerce technology and our delivery and sale to third parties of individual and family health insurance leads generated by our ecommerce platforms and our marketing activities.

Marketing and advertising, customer care and enrollment, technology and content and general and administrative operating expenses that are directly attributable to a segment are reported within the applicable segment. Indirect marketing and advertising, customer care and enrollment and technology and content operating expenses are allocated to each segment based on usage. Other indirect general and administrative operating expenses are managed in a corporate shared services environment and, since they are not the responsibility of segment operating management, are not allocated to the two operating segments and are presented as a reconciling item to our consolidated financial results.

Segment profit (loss) is calculated as total revenue for the applicable segment less direct and allocated marketing and advertising, customer care and enrollment, technology and content and general and administrative operating expenses, excluding stock-based compensation, depreciation and amortization expense and amortization of intangible assets.

Use of Estimates —The preparation of consolidated financial statements and related disclosures in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the consolidated financial statements and accompanying notes. On an ongoing basis, we evaluate our estimates, including those related to, but not limited to, the useful lives of intangible assets, fair value of investments, recoverability of intangible assets, the commissions we expect to collect for each approved member cohort, valuation allowance for deferred income taxes, provision for income taxes and the assumptions used in determining stock-based compensation. We base our estimates of the carrying value of certain assets and liabilities on historical experience and on various other assumptions that we believe to be reasonable. Actual results may differ from these estimates.

Reclassifications — For presentation purposes, certain prior period amounts have been reclassified to conform to the reporting in the current period financial statements. Specifically, for the years ended December 31, 2015 and 2016, we reclassified $0.6 million and $0.8 million, respectively, of operating expenses related to our licensing department, which was previously reported as general and administrative expense, to customer care and enrollment expense. This reclassification did not affect previously reported operating results, cash flows or stockholders' equity.

Cash Equivalents — We consider all investments with an original maturity of 90 days or less from the date of purchase to be cash equivalents. Cash and cash equivalents are stated at fair value.

Property and Equipment — Property and equipment are stated at cost, less accumulated depreciation and amortization. Capital lease amortization expenses are included in depreciation expense in our Consolidated Statements of Comprehensive Income. Depreciation and amortization is computed using the straight-line method based on estimated useful lives as follows:



Computer equipment and software		3 to 5 years
Office equipment and furniture		5 years
Leasehold improvements		Lesser of useful life (typically 5 to 10 years) or related lease term

Maintenance and minor replacements are expensed as incurred.

See Note 2 - Balance Sheet Accounts of the Notes to Consolidated Financial Statements for additional information regarding our property and equipment.

Business Combinations — We allocate the fair value of the purchase consideration of our acquired businesses to the tangible assets, liabilities and intangible assets acquired based on their estimated fair values at the acquisition date. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Acquisition-related costs are recognized separately from the business combination and are expensed as incurred.

Goodwill and Intangible Assets — Goodwill represents the excess of the consideration paid over the estimated fair value of assets acquired and liabilities assumed in a business combination. In the event that we realign our reporting units, we allocate our goodwill to the new reporting units using the relative fair value approach. We test our goodwill for impairment on an annual basis in the fourth quarter of each year or whenever events or changes in circumstances indicate that the asset may be impaired. Factors that we consider in deciding when to perform an impairment test include significant negative industry or economic trends or significant changes or planned changes in our use of the intangible assets.

We realigned our reporting units into two operating segments during the year ended December 31, 2016, at which time we allocated $3.7 million and $10.4 million of the carrying value of the goodwill to the Medicare and Individual, Family and Small Business segments, respectively, based on the relative fair value of the operating segments. We continued to report the same two segments during the year ended December 31, 2017 and no goodwill impairment has been identified in any of the years presented.

Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate a potential reduction in their fair values below their respective carrying amounts. Intangible assets with finite useful lives, which include purchased technology, pharmacy and customer relationships, trade names, and certain trademarks, are amortized over their estimated useful lives.

Goodwill and intangible assets are considered non-financial assets and therefore, subsequent to their initial recognition are not revalued at fair value each reporting period unless an impairment charge is recognized.

We must make subjective judgments in determining the independent cash flows that can be related to specific asset groupings. In addition, we must make subjective judgments regarding the remaining useful lives of assets with finite useful lives. When we determine that the useful life of an asset is shorter than we had originally estimated, we accelerate the rate of amortization over the assets’ new, remaining useful life. We evaluated the remaining useful lives of our intangible assets with finite lives and determined no material adjustments to the remaining lives were required.

Other Long-Lived Assets —We evaluate other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds its fair value.

Revenue Recognition — In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, "Revenue from Contracts with Customers" ("Topic 606"), requiring an entity to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. As noted above, we adopted Topic 606 using the full retrospective method and, accordingly, our historical financial statements and related disclosures have been restated herein to reflect the adoption of Topic 606 for all periods presented.

We are compensated by the receipt of commission payments from health insurance carriers whose health insurance policies are purchased through our ecommerce platforms or our customer care centers. We may also receive commission bonuses based on our attaining predetermined target sales levels for Medicare, individual and family, small business and ancillary health insurance products, or other objectives, as determined by the health insurance carrier, which we recognize as commission revenue when we achieve the predetermined target sales levels or other objectives. In addition, we also generate revenue from non-commission revenue sources, which include online sponsorship and advertising, technology licensing and lead referrals. Payment is typically received within 60 days of approval.

The core principle of Topic 606 is to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled to in exchange for those goods or services. Accordingly, we recognize revenue for our services in accordance with the following five steps outlined in Topic 606:

•

Identification of the contract, or contracts, with a customer. A contract with a customer exists when (i) we enter into an enforceable contract with a customer that defines each party’s rights regarding the goods or services to be transferred and identifies the payment terms related to these goods or services, (ii) the contract has commercial substance and, (iii) we determine that collection of substantially all consideration for goods or services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration.

•

Identification of the performance obligations in the contract. Performance obligations promised in a contract are identified based on the goods or services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the goods or service either on its own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the goods or services is separately identifiable from other promises in the contract.


•	Determination of the transaction price. The transaction price is determined based on the consideration to which we will be entitled in exchange for transferring goods or services to the customer.

•

Allocation of the transaction price to the performance obligations in the contract. If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price ("SSP") basis.


•	Recognition of revenue when, or as, we satisfy a performance obligation. We satisfy performance obligations either over time or at a point in time, as discussed in further detail below. Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised good or service to the customer.

Commission Revenue - Our commission revenue is primarily comprised of commissions paid to us by health insurance carriers related to insurance plans that have been purchased by a member through our health insurance exchange service. We define a member as an individual currently covered by an insurance plan, which include Medicare-related, individual and family, small business and ancillary plans. We are compensated by the health insurance carrier, which we define as our customer.

We typically enter into contractual agency relationships with health insurance carriers that are non-exclusive and terminable on short notice by either party for any reason. In addition, health insurance carriers often have the ability to terminate or amend our agreements unilaterally on short notice, including provisions in our agreements relating to the commission rates paid to us by the health insurance carriers. The amendment or termination of an agreement we have with a health insurance carrier may adversely impact the commissions we are paid on health insurance plans purchased from the carrier by means of our health insurance exchange services.

For both Medicare Advantage and Medicare Part D prescription drug plans, we receive a fixed, annual commission payment from insurance carriers once the plan is approved by the carrier and either a fixed, monthly or annual commission payment beginning with and subsequent to the second plan year. In the first plan year of a Medicare Advantage and Medicare Part D prescription drug plan, after the health insurance carrier approves the application but during the effective year of the plan, we are paid a fixed commission that is prorated for the number of months remaining in the calendar year. Additionally, if the plan is the first Medicare Advantage or Medicare Part D plan issued to the member, we may receive a higher commission rate that covers a full twelve-month period, regardless of the month the plan was effective. We earn commission revenue for Medicare Advantage and Medicare Part D prescription drug plans for which we are the broker of record, typically until either the policy is cancelled or we otherwise do not remain the agent on the policy.

For individual and family, Medicare Supplement, small business and ancillary plans, our commissions generally represent a flat amount per member per month or a percentage of the premium amount collected by the carrier during the period that a member maintains coverage under a plan. Premium-based commissions are reported to us after the premiums are collected by the carrier, generally on a monthly basis. We generally continue to receive the commission payment from the relevant insurance carrier until the health insurance plan is cancelled or we otherwise do not remain the agent on the policy.

We utilize a practical expedient to estimate commission revenue for each insurance product by applying the use of a portfolio approach to group approved members by the effective month of the relevant policy (referred to as a “cohort”). This allows us to estimate the commissions we expect to collect for each approved member cohort by evaluating various factors, including but not limited to, contracted commission rates, carrier mix and expected member churn.

For Medicare-related, individual and family and ancillary health insurance plans, our services are complete once a submitted application is approved by the relevant health insurance carrier. Accordingly, we recognize commission revenue based upon the total estimated lifetime commissions we expect to receive for selling the plan after the carrier approves an application, net of a constraint. We refer to these estimated and constrained lifetime values as the "constrained LTV" for the plan. We provide annual services in selling and renewing small business health insurance plans; therefore, we recognize small business health insurance plan commission revenue at the time the plan is approved by the carrier, and when it renews each year thereafter, equal to the estimated commissions we expect to collect from the plan over the following 12-months. Our estimate of commission revenue for each product line is based on a number of assumptions, which include, but are not limited to, estimating conversion of an approved member to a paying member, forecasting member churn and forecasting the commission amounts likely to be received per member. These assumptions are based on historical trends and incorporate management’s judgment in interpreting those trends and in applying constraints discussed below. To the extent we make changes to the assumptions, we will recognize any material impact of the changes to commission revenue in the reporting period in which the change is made, including revisions of estimated lifetime commissions either below or in excess of previously estimated constrained LTV recognized as revenue.

For Medicare-related, individual and family and ancillary health insurance plans, we apply constraints to determine the amount of commission revenue to recognize per approved member. The constraints are applied to help ensure that the total estimated lifetime commissions expected to be collected for an approved member’s plan are recognized as revenue only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with future commissions receivable from the plan is subsequently resolved. We evaluate the appropriateness of these constraints on at least an annual basis, including assessing factors affecting our estimate of the estimated lifetime value of commissions per approved member based on current trends impacting our business and assessing whether any adjustment to those constraints should be made. We update the assumptions when we observe a sufficient level of evidence that would suggest that the long term expectation of the assumption has changed.

For the years ended December 31, 2015, 2016 and 2017, the constraints applied to the total estimated lifetime commissions we expect to receive for selling the plan after the carrier approves an application in order to derive the constrained lifetime value of commissions per approved member are as follows:



	Year Ended December 31,
	2015		2016		2017
Medicare
Medicare Advantage	7	%	7	%	7	%
Medicare Supplement	5	%	5	%	5	%
Medicare Part D	5	%	5	%	5	%

Individual and Family
Non-Qualified Health Plans	15	%	15	%	15	%
Qualified Health Plans	20	%	20	%	20	%

Ancillary	10	%	10	%	10	%

Small Business	—		—		—

Refer to Note 10 - Adoption Impact of New Revenue Standard for discussion of our adoption of ASC 606.

Other Revenue — Our sponsorship and advertising program allows carriers to purchase advertising space in specific markets in a sponsorship area on our website. In return, we are typically paid a monthly fee, which is recognized over the period that advertising is displayed, and often a performance fee based on metrics such as submitted health insurance applications, which is recognized when control has been transferred. We also offer Medicare advertising services, which include website development, hosting and maintenance. In these instances, we are typically paid a fixed, up-front fee, which we recognize as revenue as control is transferred ratably over the service period.

Our commercial technology licensing business allows carriers the use of our ecommerce platform to offer their own health insurance policies on their websites and agents to utilize our technology to power their online quoting, content and application submission processes. Typically, we are paid a one-time implementation fee, which we recognize as control is transferred on a straight-line basis over the estimated term of the customer relationship (generally the initial term of the agreement), commencing once the technology is available for use by the third party, and a performance fee based on metrics such as submitted health insurance applications. The metrics used to calculate performance fees for both sponsorship and advertising and technology licensing are based on performance criteria that are either measured based on data tracked by us, or based on data tracked by the third party. In instances where the performance criteria data is tracked by us, we recognize revenue in the period of performance and when all other revenue recognition criteria has been met. In instances where the performance criteria data is tracked by the third party, we recognize revenue as control is transferred at amounts where reversal of such amounts is not likely to occur. Typically, this occurs through our receipt of a cash payment from the third party along with a detailed statement containing the data that is tracked by the third party.

Deferred Revenue — Deferred revenue includes deferred technology licensing implementation fees and amounts billed for performance obligations, including professional services, in arrangements with multiple performance obligations that do not have stand-alone value from other, undelivered performance obligations, as well as amounts billed or collected from sponsorship or technology licensing customers in advance of our performing our service for such customers. It also includes the amount by which both unbilled and billed services provided under our technology licensing arrangements exceed the straight-line revenue recognized to date.

Some of our contracts with customers contain multiple performance obligations. We allocate revenue to all performance obligations within an arrangement with multiple performance obligations at the inception of the arrangement using the relative standalone selling price method.

Disaggregation of Revenue — The table below depicts the disaggregation of revenue by product for the years ended December 31, 2015, 2016, and 2017, and is consistent with how we evaluate our financial performance:



		Year Ended December 31,
		2015		2016		2017
Commission Revenue:
Medicare:
Medicare Advantage		$	75,479	$	95,736	$	107,567
Medicare Supplement		9,271		11,561		15,435
Medicare Part D		6,771		8,800		11,085
Total Medicare		91,521		116,097		134,087
Individual and Family ⁽¹⁾:
Non-Qualified Health Plans		40,630		18,852		10,024
Qualified Health Plans		18,790		14,365		7,055
Total Individual and Family		59,420		33,217		17,079
Ancillary:
Short-term		7,788		7,276		5,504
Dental		10,702		6,968		5,064
Vision		2,575		2,013		1,607
Other		2,326		2,189		3,873
Total Ancillary		23,391		18,446		16,048
Small Business		5,788		6,133		7,501
Commission Bonus		4,813		3,341		2,168
Total Commission Revenue		184,933		177,234		176,883
Other Revenue		18,414		16,090		13,823
Total Revenue		$	203,347	$	193,324	$	190,706

(1)	We define our Individual and Family Plan offerings as major medical individual and family health insurance plans, which does not include Medicare-related, small business or ancillary plans. Individual and family health insurance plans include both Qualified and Non-Qualified plans. Qualified health plans are individual and family health insurance plans that meet the requirements of the Affordable Care Act and are offered through the government-run health insurance exchange in the relevant jurisdiction. Non-Qualified health plans are individual and family health insurance plans that meet the requirements of the Affordable Care Act and are not offered through the exchange in the relevant jurisdiction. Individuals that purchase Non-Qualified health plans cannot receive a subsidy in connection with the purchase of Non-Qualified plans.

Book-of-Business Transfers — We entered into several agreements with a broker partner, whereby the partner transferred certain of its existing Medicare plan members to us as the broker of record on the underlying policies. The first of these book-of-business transfers occurred in November 2010 and the most recent in June 2012. Total consideration paid by us for these books-of-business amounted to $13.9 million. The consideration we paid to the broker partner was based on the discounted commissions expected to be received over the remaining life of each transferred Medicare plan member. As we receive commission payments from health insurance carriers for these plan members, we record the margin earned to other income (expense), net in the consolidated statements of comprehensive income (loss). The margin earned and recorded to other income, net for these books-of-business for the years ended December 31, 2015, 2016 and 2017 totaled $1.2 million, $1.0 million and $0.9 million, respectively.

Incremental Costs to Obtain a Contract — We reviewed our sales compensation plans, which are directed at converting leads into approved members, and concluded that they are fulfillment costs and not costs to obtain a contract with a health insurance carrier, which we define as our customer. Additionally, we reviewed compensation plans related to personnel responsible for identifying new health insurance carriers and entering into contracts with new health insurance carriers and concluded that no incremental costs are incurred to obtain such contracts.

Cost of Revenue — Included in cost of revenue are payments related to health insurance policies sold to members who were referred to our website by marketing partners with whom we have revenue-sharing arrangements. In order to enter into a revenue-sharing arrangement, marketing partners must be licensed to sell health insurance in the state where the policy is sold. Costs related to revenue-sharing arrangements are expensed as the related revenue is recognized.

Marketing and Advertising Expenses — Marketing and advertising expenses consist primarily of member acquisition expenses associated with our direct, marketing partner and online advertising member acquisition channels, in addition to compensation and other expenses related to marketing, business development, partner management, public relations and carrier relations personnel who support our offerings. Advertising costs incurred in the years ended December 31, 2015, 2016 and 2017 totaled $66.5 million, $64.8 million and $56.0 million, respectively.

Our direct channel expenses primarily consist of costs for direct mail, email marketing and television and radio advertising. Advertising costs for our direct channel are expensed the first time the related advertising takes place. Our marketing partner channel expenses primarily consist of fees paid to marketing partners with which we have a relationship. Our online advertising channel expenses primarily consist of paid keyword search advertising on search engines and retargeting campaigns. Advertising costs for our marketing partner channel and our online advertising channel are expensed as incurred.

Research and Development Expenses — Research and development expenses consist primarily of compensation and related expenses incurred for employees on our engineering and technical teams. Research and development costs, which totaled $10.6 million, $8.9 million and $7.6 million for the years ended December 31, 2015, 2016 and 2017, respectively, are included in technology and content expense in the accompanying Consolidated Statements of Comprehensive Income.

Deferred Contract Costs — Deferred contract costs primarily represent direct costs related to professional services provided in connection with technology licensing arrangements that are accounted for as a single unit of accounting. The direct professional services costs are deferred up until the commencement of revenue recognition of the single unit and then recognized as cost of revenue ratably over the same period as the related revenue.

Internal-Use Software and Website Development Costs — We capitalize costs of materials, consultants and compensation and benefits costs of employees who devote time to the development of internal-use software during the application development stage. Our judgment is required in determining the point at which various projects enter the phases at which costs may be capitalized, in assessing the ongoing value of the capitalized costs and in determining the estimated useful lives over which the costs are amortized, which is generally three years. For the years ended December 31, 2015, 2016 and 2017, we capitalized internal-use software and website development costs of $1.1 million, $1.8 million and $3.2 million, respectively, and recorded amortization expense of $0.6 million, $0.9 million and $1.5 million, respectively.

Stock-Based Compensation — We recognize stock-based compensation expense in the accompanying Consolidated Statements of Comprehensive Income based on the fair value of our stock-based awards over their respective vesting periods, which is generally four years. The estimated grant date fair value of our stock options is determined using the Black-Scholes-Merton pricing model and a single option award approach. The weighted-average expected term for stock options granted is calculated using historical option exercise behavior. The dividend yield is determined by dividing the expected per share dividend during the coming year by the grant date stock price. Through December 31, 2017, we had not declared or paid any cash dividends, and we do not expect to pay any in the foreseeable future. We base the risk-free interest rate on the implied yield currently available on U.S. Treasury zero-coupon issues with a remaining term equal to the expected term of our stock options. Expected volatility is determined using a combination of the implied volatility of publicly traded options in our stock and historical volatility of our stock price. The estimated attainment of performance-based awards and related expense is based on the expectations of revenue and earnings target achievement. The estimated fair value of performance awards with market conditions is determined using the Monte-Carlo simulation model. The assumptions used in calculating the fair value of stock-based payment awards and expected attainment of performance-based awards represent our best estimates, but these estimates involve inherent uncertainties and the application of management judgment. We will continue to use judgment in evaluating the expected term and volatility related to our own stock-based awards on a prospective basis, and incorporating these factors into the model. Changes in key assumptions could significantly impact the valuation of such instruments.

401(k) Plan — In September 1998, our board of directors adopted a defined contribution retirement plan ("401(k) Plan"), which qualifies under Section 401(k) of the Internal Revenue Code of 1986. Participation in the 401(k) Plan is available to substantially all employees in the United States. Employees can contribute up to 25% of their salary, up to the federal maximum allowable limit, on a before-tax basis to the 401(k) Plan. Employee contributions are fully vested when contributed. Our contributions to the 401(k) Plan are discretionary and are expensed when incurred. We also match employee contributions to our 401(k) Plan at 25% of an employee’s contribution each pay period, up to a maximum of 1% of the employee’s salary during such pay period. Our matching contributions are expensed as incurred and vest one-third for each of the first three years of the recipient’s service. The recipient is fully vested in all 401(k) Plan matching contributions after three years of service. We recognized expense of $0.3 million, $0.3 million and $0.4 million for the years ended December 31, 2015, 2016 and 2017, respectively, related to 401(k) matching contributions.

Income Taxes — We account for income taxes using the liability method. Deferred income taxes are determined based on the differences between the financial reporting and tax bases of assets and liabilities, using enacted statutory tax rates in effect for the year in which the differences are expected to reverse.

We utilize a two-step approach for evaluating uncertain tax positions. Step one, Recognition, requires a company to determine if the weight of available evidence indicates that a tax position is more likely than not to be sustained upon audit, including resolution of related appeals or litigation processes, if any. Step two, Measurement, is based on the largest amount of benefit, which is more likely than not to be realized on ultimate settlement. We record interest and penalties related to uncertain tax positions as income tax expense in the consolidated financial statements.

Seasonality — A greater number of our Medicare-related health insurance plans are sold in our fourth quarter during the Medicare annual enrollment period when Medicare-eligible individuals are permitted to change their Medicare Advantage and Medicare Part D prescription drug coverage for the following year. As a result, our Medicare plan-related commission revenue is highest in our fourth quarter.

The majority of our individual and family health insurance plans are sold in the fourth quarter during the annual open enrollment period as defined under the federal Patient Protection and Affordable Care Act and related amendments in the Health Care and Education Reconciliation Act. Individuals and families generally are not able to purchase individual and family health insurance outside of these open enrollment periods, unless they qualify for a special enrollment period as a result of certain qualifying events, such as losing employer-sponsored health insurance or moving to another state.

Recent Accounting Pronouncements

Compensation — Stock Compensation (Topic 718) — In May 2017, the FASB issued ASU No. 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting, which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. ASU 2017-09 is effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. ASU 2017-09 is to be applied on a prospective basis to an award modified on or after the adoption date. We adopted ASU 2017-09 in the first quarter of 2018 and the adoption of this new standard to have a material impact on our consolidated financial statements.

Goodwill Impairment (Topic 350) — In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment (Topic 350). Under the new standard, goodwill impairment would be measured as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying value of goodwill. This ASU eliminates existing guidance that requires an entity to determine goodwill impairment by calculating the implied fair value of goodwill by hypothetically assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. The new standard is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2019 with early adoption permitted for annual goodwill impairment tests performed after January 1, 2017. The standard must be applied prospectively. Upon adoption, the standard will impact how we assess goodwill for impairment. We do not expect ASU 2017-04 will have a material impact on our consolidated financial statements.

Statement of Cash Flows (Topic 230) — In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which clarifies guidance on the classification and presentation of restricted cash in the statement of cash flows. Under the ASU, changes in restricted cash and restricted cash equivalents would be included along with those of cash and cash equivalents in the statement of cash flows. As a result, entities would no longer present transfers between cash/equivalents and restricted cash/equivalents in the statement of cash flows. In addition, a reconciliation between the balance sheet and the statement of cash flows would be disclosed when the balance sheet includes more than one line item for cash/equivalents and restricted cash/equivalents. ASU 2016-18 was effective for us beginning on January 1, 2018 and was applied on a retrospective basis. The adoption of this new standard did not have a material impact on our consolidated financial statements.

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 provides guidance on how certain cash receipts and cash payments are presented on the statement of cash flows. ASU 2016-15 is effective for annual reporting periods beginning after December 15, 2017. We will adopt ASU 2016-15 in the first quarter of 2018 and we do not expect the adoption of this new standard will have a material impact on our consolidated financial statements.

Leases (Topic 842) — In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). ASU 2016-02 requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement, and presentation of expenses will depend on classification as a finance or operating lease; for lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct finance leases. The guidance also eliminates existing real estate-specific provisions for all entities. The new standard is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. Early adoption is permitted. We are currently considering our timing of adoption and are in the process of evaluating the impact of the adoption of ASU 2016-02 on our consolidated financial statements.

Balance Sheet Accounts

12 Months Ended

Dec. 31, 2017

Stockholders' Equity Note [Abstract]

Balance Sheet Accounts

Cash and Cash Equivalents — As of December 31, 2016 and December 31, 2017, our cash equivalents consisted of money market accounts that invested in U.S. government-sponsored enterprise bonds and discount notes, U.S. government treasury bills and notes and repurchase agreements collateralized by U.S. government obligations. As of December 31, 2016 and December 31, 2017, our cash equivalents carried no unrealized gains or losses and we did not realize any significant gains or losses on sales of cash equivalents during the years ended December 31, 2016 and 2017.

As of December 31, 2016 and December 31, 2017, our cash and cash equivalent balances were invested as follows (in thousands):



	December 31, 2016		December 31, 2017
Cash	$	4,066	$	5,098
Money market funds	57,715		35,195
Total cash and cash equivalents	$	61,781	$	40,293

Concentration of Credit Risk — Our financial instruments that are exposed to concentrations of credit risk principally consist of cash, cash equivalents and accounts receivable. We invest our cash and cash equivalents with major banks and financial institutions and, at times, such investments are in excess of federally insured limits. We also have deposits with major banks in China that are denominated in both U.S. dollars and Chinese Yuan Renminbi and are not insured by the U.S. federal government.

We do not require collateral or other security for our accounts receivable. As of December 31, 2016, four customers represented 23%, 17%, 15%, and 12%, respectively, for a combined total of 67% of our $1.9 million outstanding accounts receivable balance. As of December 31, 2017, three customers represented 25%, 22%, and 14%, respectively, or a combined total of 61%, of our $1.5 million outstanding accounts receivable balance. No other customers represented 10% or more of our total accounts receivable at December 31, 2016 and December 31, 2017. We believe the potential for collection issues with any of our customers was minimal as of December 31, 2017. Accordingly, our estimate for uncollectible amounts at December 31, 2017 and 2016 was not material.

As of December 31, 2016 and December 31, 2017, Medicare commissions receivable accounted for 81% and 71%, respectively, of the total commissions receivable balance.

Prepaid Expenses and Other Current Assets — Prepaid expenses and other current assets consisted of the following (in thousands):



	December 31, 2016		December 31, 2017
Prepaid maintenance contracts	$	2,026	$	1,944
Prepaid insurance	541		490
Prepaid rent	370		311
Other current assets	1,140		1,560
Prepaid expenses and other current assets	$	4,077	$	4,305

Property and Equipment — Property and equipment consisted of the following (in thousands):



	December 31, 2016			December 31, 2017
Computer equipment and software	$	17,524		$	17,112
Office equipment and furniture	3,490			3,583
Leasehold improvements	3,173			3,156
Property and equipment, gross	24,187			23,851
Less accumulated depreciation and amortization	(18,579		)	(19,146		)
Property and equipment, net	$	5,608		$	4,705

Depreciation and amortization expense related to property and equipment totaled $4.1 million, $3.5 million and $2.8 million in the years ended December 31, 2015, 2016 and 2017, respectively.

Other Assets — Other assets consisted of the following (in thousands):



	December 31, 2016		December 31, 2017
Capitalized project costs	$	2,735	$	4,481
Security deposits	589		545
Deferred tax assets	204		232
Other assets	279		2,029
Other assets	$	3,807	$	7,287

Intangible Assets — The carrying amounts, accumulated amortization, net carrying value and weighted average remaining life of our definite-lived amortizable intangible assets, as well as our indefinite-lived intangible trademarks, are presented in the tables below for (dollars in thousands, weighted-average useful life is as of December 31, 2017):



	December 31, 2016							December 31, 2017
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Remaining Life
Technology	$	1,700	$	(1,700	)	$	—	$	1,700	$	(1,700	)	$	—	0 years
Pharmacy and customer relationships	10,100		(6,934		)	3,166		10,100		(7,884		)	2,216		2.3 years
Trade names, trademarks and website addresses	907		(607		)	300		907		(697		)	210		2.3 years
Total intangible assets subject to amortization	$	12,707	$	(9,241	)	$	3,466	$	12,707	$	(10,281	)	$	2,426
Indefinite-lived trademarks and domain names						5,114							5,114		Indefinite
Intangible assets						$	8,580						$	7,540

During the years ended December 31, 2015, 2016 and 2017, amortization expense related to intangible assets totaled $1.2 million, $1.0 million and $1.0 million, respectively.

As of December 31, 2017, expected amortization expense in future periods is as follows (in thousands):



Years Ending December 31,	Pharmacy and Customer Relationships		Trade Names, Trademarks and Website Addresses		Total
2018	$	950	$	90	$	1,040
2019	950		90		1,040
2020	316		30		346
Total	$	2,216	$	210	$	2,426

Other Current Liabilities — Other current liabilities consisted of the following (in thousands):



	December 31, 2016		December 31, 2017
Deferred revenue	$	851	$	385
Professional fees	307		1,012
Other accrued expenses	490		611
Total other current liabilities	$	1,648	$	2,008

Other Non-Current Liabilities — Non-current liabilities consisted of the following (in thousands):



	December 31, 2016		December 31, 2017
Deferred rent – non-current	$	830	$	724
Accrued affiliate commissions	1,322		1,092
Income tax payable – non-current	1,978		19
Other non-current liabilities	123		85
Total other non-current liabilities	$	4,253	$	1,920

Fair Value Measurements

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Fair Value Measurements

We define fair value as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques we use to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. We classify the inputs used to measure fair value into the following hierarchy:



Level 1		Unadjusted quoted prices in active markets for identical assets or liabilities
Level 2		Unadjusted quoted prices in active markets for similar assets or liabilities, or
		Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or
		Inputs other than quoted prices that are observable for the asset or liability
Level 3		Unobservable inputs for the asset or liability

Our cash equivalents were invested in money market funds and were classified as Level 1. We endeavor to utilize the best available information in measuring fair value. We used observable prices in active markets in determining the classification of our money market funds as Level 1.

The following table is a summary of financial assets measured at fair value on a recurring basis and their classification within the fair value hierarchy (in thousands).



	December 31, 2016						December 31, 2017
	Carrying Value		Level 1		Total		Carrying Value		Level 1		Total
Assets
Money market funds	$	57,715	$	57,715	$	57,715	$	35,195	$	35,195	$	35,195

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Stockholders' Equity

12 Months Ended

Dec. 31, 2017

Stockholders' Equity

Stockholder's Equity

Preferred Stock — Our board of directors has the authority, without any further action by our stockholders, to issue up to 110,000,000 shares, par value $0.001 per share, of which 10,000,000 shares are designated as preferred stock. As of December 31, 2016 and 2017, there were no shares of preferred stock outstanding.

Common Stock — On all matters submitted to our stockholders for vote, our common stockholders are entitled to one vote per share, voting together as a single class, and do not have cumulative voting rights. Accordingly, the holders of a majority of the shares of common stock entitled to vote in any election of directors can elect all of the directors standing for election, if they so choose. Subject to preferences that may apply to any shares of preferred stock outstanding, the holders of common stock are entitled to share equally in any dividends, when and if declared by our board of directors. Upon the occurrence of a liquidation, dissolution or winding-up, the holders of common stock are entitled to share equally in all assets remaining after the payment of any liabilities and the liquidation preferences on any outstanding preferred stock. Holders of common stock have no preemptive or conversion rights or other subscription rights and there are no redemption or sinking funds provisions applicable to the common stock.

Shares Reserved — We generally issue previously unissued common stock upon the exercise of stock options, the vesting of restricted stock units and upon granting of restricted common stock awards; however we may reissue previously acquired treasury shares to satisfy these future issuances. Shares of authorized but unissued common stock reserved for future issuance were as follows (in thousands):



	December 31, 2017
Common stock:
Stock options issued and outstanding	983
Restricted stock units issued and outstanding	1,745
Shares available for grant	1,409
Total shares reserved	4,137

Stock Plans — On June 12, 2014, upon approval at the Annual Meeting of Stockholders, we adopted the 2014 Equity Incentive Plan (the “2014 Plan”). The 2014 Plan replaced the 2006 Equity Incentive Plan and 4,500,000 shares were authorized for issuance under the 2014 Plan. The 2014 Plan does not include an evergreen provision to automatically increase the number of shares available under it and increases in the number of shares authorized for issuance under the 2014 Plan require stockholder approval. Also, under the 2014 Plan the following shares are not recycled for future grant under the 2014 Plan: (i) shares used in connection with the exercise of an option and/or stock appreciation right to pay the exercise price or purchase price of such award or satisfy applicable tax withholding obligations; and (ii) the gross number of shares subject to stock appreciation rights that are exercised. Furthermore, the 2014 Plan included a provision that prohibits repricing of outstanding stock options or stock appreciation rights and formalized and updated procedures to qualify awards as “performance-based” compensation under Section 162(m) of the Internal Revenue Code in order to preserve full tax deductibility of such awards.

We previously granted options to purchase shares of our common stock and restricted stock units under our 2006 Equity Incentive Plan and 2005 Stock Plan. The 2006 Equity Incentive Plan was terminated with respect to the grant of additional awards on June 12, 2014, upon adoption of our 2014 Plan. The 2005 Stock Plan was terminated with respect to the grant of additional awards upon the effectiveness of the 2006 Equity Incentive Plan.

Our stock options granted under the 2014 Plan generally vest over four years at a rate of 25% after one year and 1/48th per month thereafter. Stock options granted under the 2014 Plan generally expire after seven years from the date of grant. On December 31, 2017, no shares were subject to repurchase.

Our restricted stock unit awards granted under the 2014 Plan, 2006 Plan and 2005 Stock Plan generally vest over four years at a rate of 25% after one year and 25% annually thereafter.

We grant market-based restricted stock units to our executive officers and certain members of our senior management team. Each market-based stock unit represents a contingent right to receive certain shares of our common stock upon the attainment of certain stock prices over a four-year performance period. Once a stock price threshold is achieved, the portion of the award related to that threshold will vest on the one-year anniversary of the date of achievement, subject to the employee's continued service through each vesting date. Compensation expense related to these awards is recognized on an accelerated basis over the requisite service period.

The following table summarizes activity under our 2014 Plan for the year ended December 31, 2017 (in thousands):



	Shares Available for Grant ¹
Shares available for grant December 31, 2016 ¹	2,267
Restricted stock units granted ²	(860	)
Options granted ³	(330	)
Restricted stock units cancelled ⁴	318
Options cancelled	14
Shares available for grant December 31, 2017 ¹	1,409


(1)	Shares available for grant do not include treasury stock shares that could be granted if we determined to do so.


(2)	Includes grants of restricted stock units with service, performance-based or market-based vesting criteria.


(3)	Includes grants of stock options with service, performance-based or market-based vesting criteria.


(4)	Includes cancelled restricted stock units with service, performance-based or market-based vesting criteria.

The following table summarizes stock option activity under the Stock Plans (in thousands, except weighted-average exercise price and weighted-average remaining contractual life data):



	Number of Stock Options ¹		Weighted Average Exercise Price		Weighted-Average Remaining Contractual Life (years)	Aggregate Intrinsic Value ²
Balance outstanding at December 31, 2016	975		$	18.14	3.5	$	31
Granted	330		$	16.95
Exercised	(69	)	$	14.96
Cancelled	(253	)	$	20.43
Balance outstanding at December 31, 2017	983		$	17.38	4.6	$	2,522
Vested and expected to vest at December 31, 2017	931		$	17.44	4.5	$	2,401
Exercisable at December 31, 2017	405		$	20.34	2.6	$	857


(1)	Includes certain stock options with service, performance-based or market-based vesting criteria.


(2)	The aggregate intrinsic value is calculated as the product between eHealth’s closing stock price as of December 31, 2016 and December 31, 2017 and the exercise price of in-the-money options as of those dates.

The following table provides information pertaining to our stock options for the year ended December 31, 2015, 2016 and 2017 (in thousands, except weighted-average fair values):



	Year Ended December 31,
	2015		2016		2017
Weighted average fair value of options granted	$	5.67	$	4.46	$	9.03
Total fair value of options vested	$	1,602	$	1,243	$	799
Intrinsic value of options exercised	$	546	$	4	$	430

The following table summarizes restricted stock unit activity under the Stock Plans (in thousands, except weighted-average grant date fair value and weighted-average remaining contractual life data):



	Number of Restricted Stock Units ¹		Weighted-Average Grant Date Fair Value		Weighted-Average Remaining Service Period	Aggregate Intrinsic Value ²
Unvested as of December 31, 2016	1,523		$	12.83	2.8	$	13,901
Granted	860		$	16.28
Vested	(318	)	$	15.19
Cancelled	(320	)	$	12.17
Unvested as of December 31, 2017	1,745		$	14.24	2.3	$	30,313


(1)	Includes certain restricted stock units with service, performance-based or market-based vesting criteria.


(2)	The aggregate intrinsic value is calculated as the difference of our closing stock price as of December 31, 2016 and December 31, 2017 multiplied by the number of restricted stock units outstanding as of December 31, 2016 and December 31, 2017, respectively.

Stock Repurchase Programs — We had no stock repurchase activity during the years ended December 31, 2015, 2016 and 2017. In addition to 10,663,888 shares repurchased under our past repurchase programs as of December 31, 2017, we have in treasury 574,107 shares that were previously surrendered by employees to satisfy tax withholdings due in connection with the vesting of certain restricted stock units. As of December 31, 2016 and December 31, 2017, we had a total of 11,135,590 shares and 11,237,995 shares, respectively, held in treasury.

For accounting purposes, common stock repurchased under our stock repurchase programs is recorded based upon the settlement date of the applicable trade. Such repurchased shares are held in treasury and are presented using the cost method.

Stock-Based Compensation Expense — The fair value of stock options granted to employees for the years ended December 31, 2015, 2016 and 2017 was estimated using the following weighted average assumptions:



	Year Ended December 31,
	2015	2016	2017
Expected term	4.3	4.4	4.3
Expected volatility	64.1%	65.4%	69.8%
Expected dividend yield	—%	—%	—%
Risk-free interest rate	1.2%	1.1%	1.8%

The weighted-average fair value of the market-based options and restricted stock units was determined using the Monte Carlo simulation model using the following weighted average assumptions:



	Year Ended December 31,
	2015	2016	2017
Expected term	2.6	2.1	1.6
Expected volatility	64.7%	67.9%	70.9%
Expected dividend yield	—%	—%	—%
Risk-free interest rate	1.1%	1.1%	1.7%
Weighted average grant date fair value	$6.69	$9.64	$9.42

The following table summarizes stock-based compensation expense recorded during the years ended December 31, 2015, 2016 and 2017 (in thousands):



	Year Ended December 31,
	2015		2016		2017
Common stock options	$	1,522	$	1,015	$	1,863
Restricted stock units	5,480		6,251		7,831
Total stock-based compensation expense	$	7,002	$	7,266	$	9,694

The following table summarizes stock-based compensation expense by operating function for the years ended December 31, 2015, 2016 and 2017 (in thousands):



	Year Ended December 31,
	2015		2016		2017
Marketing and advertising	$	1,950	$	1,237	$	1,033
Customer care and enrollment	477		497		418
Technology and content	1,728		1,836		1,410
General and administrative	2,734		3,696		6,833
Restructuring charges	113		—		—
Total stock-based compensation expense	$	7,002	$	7,266	$	9,694

As of December 31, 2017, there was $3.4 million of total unamortized compensation costs, net of estimated forfeitures, related to stock options, and these costs are expected to be recognized over a weighted average period of 2.6 years. As of December 31, 2017, there was $17.8 million of total unamortized compensation costs, net of estimated forfeitures, related to restricted stock units, and these costs are expected to be recognized over a weighted average period of 2.7 years.

During the year ended December 31, 2016, due to changes in our senior management, we accelerated the vesting dates of certain stock options and restricted stock units granted to three former employees. We recorded a $0.5 million incremental stock-based compensation expense in connection with this modification.

Income Taxes

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

The components of our income (loss) before benefit for income taxes were as follows (in thousands):



	Year Ended December 31,
	2015		2016		2017
United States	$	11,236	$	3,087	$	(9,242	)
Foreign	435		885		972
Income (loss) before provision for income taxes	$	11,671	$	3,972	$	(8,270	)

The provision (benefit) for income taxes consisted of the following (in thousands):



	Year Ended December 31,
	2015			2016			2017
Current:
Federal	$	(584	)	$	(948	)	$	(275	)
State	(457		)	(214		)	(1,433		)
Foreign	97			178			179
Total current	(944		)	(984		)	(1,529		)
Deferred:
Federal	8,037			4,306			(28,161		)
State	644			361			(3,992		)
Foreign	(30		)	(15		)	(14		)
Total deferred	8,651			4,652			(32,167		)
Provision (benefit) for income taxes	$	7,707		$	3,668		$	(33,696	)

The following table provides a reconciliation of the federal statutory income tax rate to our effective tax rate:



	Year Ended December 31,
	2015		2016		2017
Tax provision (benefit) at U.S. statutory rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal benefit	10.5		14.1		31.7
Non-qualified stock option shortfalls (windfalls), net	15.2		23.0		1.9
Stock-based compensation	11.0		18.3		(9.7	)
Lobbying	2.6		8.9		(9.1	)
Research and development credits	(9.7	)	(20.4	)	(1.5	)
Tax reform - tax rate change	—		—		355.9
Foreign income tax and income inclusion	—		10.9		2.7
Other	1.4		2.4		0.7
Effective tax rate	66.0	%	92.2	%	407.6	%

Our effective tax rates in 2015 and 2016 were both higher than the federal rate. The provision for income taxes in 2015 differs from the federal statutory rate primarily due to stock based compensation adjustments and non-deductible lobbying expenses, partially offset by the release of a liability for unrecognized tax benefits and research and development tax credits. The provision for income taxes in 2016 differs from the federal statutory rate primarily due to stock based compensation adjustments, foreign income inclusions, and non-deductible lobbying expenses, partially offset by the release of a liability for unrecognized tax benefits and research and development tax credits.

Our effective tax rate in 2017 differs from the federal statutory rate primarily due to the release of a liability for unrecognized tax benefits and tax rate change resulting from the Tax Cuts and Jobs Act of 2017, or the “Jobs Act”, passed on December 22, 2017. The Jobs Act resulted in significant changes to the Internal Revenue Code. The Jobs Act reduces the federal corporate income tax rate from 35% to 21% effective for tax periods beginning after December 31, 2017; changes U.S international taxation from a worldwide tax system to a territorial system; and imposes a one-time transition tax on untaxed cumulative foreign earnings and profits as of December 31, 2017. The Act also includes provisions for the elimination of the Alternative Minimum Tax, or AMT, among other changes. The previously recorded deferred tax asset for AMT credits of $1.8 million, which are now refundable credits under the provisions of the Jobs Act, was recorded as a long-term receivable and included in Other assets in the consolidated balance sheets. We have also remeasured the deferred tax assets and liabilities based on the rate at which they are expected to reverse in the future and recorded a $29.4 million benefit as a result of this remeasurement.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, together with net operating loss and tax credit carry forwards. Significant components of our deferred tax assets were as follows (in thousands):



	December 31, 2016			December 31, 2017
Deferred tax assets:
Accruals and reserves	$	2,242		$	2,499
Stock-based compensation	2,960			2,443
Intangible assets	1,464			448
Net operating losses	9,337			12,055
Tax credits	4,399			3,569
Other	70			178
Total deferred tax assets	20,472			21,192
Deferred tax liabilities:
Commissions receivable	(93,538		)	(64,911		)
Intangible assets	(2,133		)	(1,083		)
Fixed assets	—			(55		)
Total deferred tax liabilities	(95,671		)	(66,049		)
Net deferred tax liabilities	$	(75,199	)	$	(44,857	)

Assessing the realizability of our deferred tax assets is dependent upon several factors, including the likelihood and amount, if any, of future taxable income in relevant jurisdictions during the periods in which those temporary differences become deductible. We forecast taxable income by considering all available positive and negative evidence, including our history of operating income and losses and our financial plans and estimates that we use to manage the business. These assumptions require significant judgment about future taxable income.

Prior to the adoption of ASC 606, we primarily recognized revenue from commissions as cash was received for both GAAP and tax accounting purposes. Upon adopting Topic 606 on January 1, 2018, a commission receivable asset was recognized for the lifetime value of commissions expected to be received for members. This represented a significant acceleration of revenue recognition for GAAP purposes while the related cash is expected to be collected over several years. Thus, we concluded that for tax accounting purposes, revenue would continue to be recognized as we collect cash. The difference between the GAAP and tax basis of accounting results in a significant deferred tax liability related to the commissions receivable recognized, which is a source of income that can be used when assessing the realizability of our U.S. deferred tax assets. We concluded that our deferred tax liabilities are sufficient to support the realizability of our deferred tax assets and accordingly reversed our previously recorded valuation allowance as of January 1, 2015, the earliest period to which the retrospective the adoption of Topic 606 was applied. Based on our history of earnings and projected future taxable income, all deferred taxes are considered more likely than not to be realized.

We had net operating loss carry forwards at December 31, 2017 of approximately $39.7 million and $60.0 million

for federal income tax and state income tax purposes, respectively. Federal and state net operating loss carry forwards begin expiring in 2034 and 2020, respectively. At December 31, 2017, we had tax credit carry forwards of approximately $3.0 million and $4.2 million for federal income tax and state income tax purposes, respectively. The Federal tax credit carry forwards begin expiring in 2021. The state tax credits carry forward indefinitely.

Utilization of the net operating loss ("NOL") carryforwards and credits may be subject to a substantial annual limitation due to ownership changes that may have occurred or that could occur in the future, as required by Section 382 of the Internal Revenue Code of 1986, as amended, or the Code, and similar state provisions. These ownership change limitations may limit the amount of NOL carryforwards and other tax attributes that can be utilized annually to offset future taxable income and tax, respectively. In general, an “ownership change” as defined by Section 382 of the Code results from a transaction or series of transactions over a three-year period resulting in an ownership change of more than 50 percentage points (by value) of the outstanding stock of a company by certain stockholders.

A reconciliation of the beginning and ending amount of our unrecognized tax benefits is as follows (in thousands):



	Unrecognized Tax Benefits
Balance at December 31, 2014	$	6,756
Increases based on tax positions related to the prior year	344
Decreases based on tax positions related to the prior year	(24		)
Lapse of statute of limitations	(1,301		)
Additions based on tax positions related to the current year	409
Balance at December 31, 2015	$	6,184
Lapse of statute of limitations	(1,236		)
Additions based on tax positions related to the current year	305
Balance at December 31, 2016	5,253
Decreases based on tax positions related to the prior year	(862		)
Lapse of statute of limitations	(1,637		)
Additions based on tax positions related to the current year	342
Balance at December 31, 2017	$	3,096

Tax positions are evaluated in a two-step process. We first determine whether it is more likely than not that a tax position will be sustained upon examination. If a tax position meets the more-likely-than-not recognition threshold, it is then measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement.

As of December 31, 2017, the total amount of gross unrecognized tax benefits was $3.1 million, of which a nominal amount, if recognized, would impact our effective tax rate. As of December 31, 2016, the total amount of gross unrecognized tax benefits was $5.3 million, of which $1.6 million, if recognized, would impact our effective tax rate.

We record interest and penalties related to unrecognized tax benefits in income tax expense. At December 31, 2017, we had an immaterial amount accrued for estimated interest related to uncertain tax positions. We did not record an accrual for penalties.

Included in the balance of income tax liabilities, accrued interest, and accrued penalties at December 31, 2017 is a nominal amount related to tax positions for which it is reasonably possible that the statute of limitations will expire in various jurisdictions and income tax exams will close within the next twelve months.

We are subject to taxation in various jurisdictions, including federal, state and foreign. Our federal and state income tax returns are generally not subject to examination by taxing authorities for fiscal years before 2007 due to our net operating losses. The examination of our 2009 and 2010 California income tax returns by the California Franchise Tax Board was completed in the first quarter of 2017. We assessed the impact on our unrecognized tax benefits for all open years and recorded any necessary adjustments in the first quarter of 2017.

Net Loss Per Share

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Net Loss Per Share

Net Income Per Share

Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed by dividing the net income for the period by the weighted average number of common and common equivalent shares outstanding during the period. Diluted net income per share is computed giving effect to all potential dilutive common stock equivalent shares, including options and restricted stock units. The dilutive effect of outstanding awards is reflected in diluted net income per share by application of the treasury stock method.

The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share amounts):



	Year Ended December 31,
	2015		2016		2017
Basic:
Numerator:
Net income	$	3,964	$	304	$	25,426
Denominator:
Net weighted-average number of common stock shares outstanding	18,008		18,272		18,512
Net income per share—basic:	$	0.22	$	0.02	$	1.37
Diluted:
Numerator:
Net income	$	3,964	$	304	$	25,426
Denominator:
Net weighted average number of common stock shares outstanding	18,008		18,272		18,512
Dilutive effect of common stock	78		42		535
Total common stock shares used in per share calculation	18,086		18,314		19,047
Net income per share—diluted	$	0.22	$	0.02	$	1.33

For each of the years ended December 31, 2015, 2016 and 2017, we had securities outstanding that could potentially dilute earnings per share, but the shares from the assumed conversion or exercise of these securities were excluded in the computation of diluted net income per share as their effect would have been anti-dilutive. The number of outstanding anti-dilutive shares that were excluded from the computation of diluted net income per share consisted of the following (in thousands):



	Year Ended December 31,
	2015	2016	2017
Common stock options	1,484	1,222	908
Restricted stock units	866	768	1,296
Total	2,350	1,990	2,204

Commitments and Contingencies

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments And Contingencies

Commitments and Contingencies

Legal Proceedings

On January 26, 2017, a purported class action lawsuit was filed against us in the Superior Court of the State of California, County of Santa Clara. The complaint alleges that we negligently failed to take necessary precautions required to protect from unauthorized disclosure of personally identifiable information contained on 2016 Form W-2s for current and former employees. The complaint purports to allege causes of action against us for negligence, violation of Section 17200 et seq. of the California Business & Professions Code, declaratory relief and breach of implied contract. The complaint seeks actual damages, punitive damages, statutory damages, costs, including experts’ fees and attorneys’ fees, pre-judgment and post-judgment interest as prescribed by law and equitable, injunctive and declaratory relief as appropriate. In April 2017, an additional purported class action lawsuit was filed against us in the Superior Court of State of California, County of Santa Clara, relating to the same circumstances. The second complaint purports to allege causes of action against us for negligence, violation of California Customer Records Act (California Civil Code Section 1798.80 et seq.), violation of the California Confidentiality of Medical Information Act (California Civil Code Section 56 et seq.), invasion of privacy by public disclosure of private facts, breach of confidentiality and violation of the California Unfair Competition Law (California Business & Professions Code Section 17200 et seq.). The causes of action for violations of the California Customer Records Act and the California Confidentiality of Medical Information Act were dismissed without prejudice. The second complaint seeks actual damages, statutory damages, restitution, disgorgement, equitable, injunctive and declaratory relief, costs, including experts’ fees and attorneys’ fees and costs of prosecuting the action, and pre-judgment and post-judgment interest as prescribed by law. In July 2017, we entered into a binding settlement term sheet where we and the plaintiffs in each of the above-described cases agreed to enter into a settlement, pursuant to which we would receive a release of all claims that were or could have been alleged related to the unauthorized disclosure at issue in each of the cases. In exchange for the release, we agreed to (i) pay, subject to an aggregate cap of $250,000, up to $2,500 to each impacted individual for reasonable, documented out-of-pocket losses or expenses related to the data security incident; (ii) offer to individuals who signed up for identity theft protection that we offered at the time of the incident a one-year extension of the identity theft protection; (iii) offer to individuals who did not sign up for identity theft protection that we offered at the time of the incident three-years of identity theft protection; and (iv) not oppose a request by class counsel for attorneys’ fees, costs and class representative enhancements of up to $245,000 in the aggregate. In December 2017, the Company entered into a joint stipulation for settlement of class action consistent with the settlement term sheet. The terms of the settlement are subject to a hearing and court approval. As of December 31, 2017, we recorded an accrual for estimated potential damages in our consolidated financial statements.

Operating Lease Obligations

We lease our operating facilities and certain of our equipment and furniture and fixtures under various operating leases, the latest of which expires in July 2023. Certain of these leases have free or escalating rent payment provisions. We recognize rent expense on our operating leases on a straight-line basis over the terms of the leases, although actual cash payment obligations under certain of these agreements fluctuate over the terms of the agreements.

In March 2012, we entered into an agreement to lease a building in Mountain View, California, adjacent to our headquarters office. The term of the operating lease is ten years from the date the building was delivered to us in August 2013. The base rent increases annually by 3%. As of December 31, 2017, future minimum payments related to this operating lease totaled $4.2 million over the remaining term of the lease plus our proportionate share of certain operating expenses, insurance costs and taxes for each calendar year during the lease.

In April 2013, we entered into an agreement to lease approximately 20,000 square feet of office space in Westford, Massachusetts. The lease commenced in July 2013 and is for a term of 5 years and 3 months. As of December 31, 2017, future minimum payments totaled approximately $0.4 million over the remaining term of the lease.

In August 2014, we renewed our agreement to lease and expanded to approximately 50,000 square feet of office space in Gold River, California. The lease commenced in August 2014 and is for a term of 4 years and 5 months. In 2015, we vacated approximately 11,200 square feet of this leased office space as a result of a workforce reduction. We reoccupied approximately 5,400 square feet of this previously vacated office space in 2016. As of December 31, 2017, future minimum payments totaled approximately $3.4 million over the remaining term of the lease.

In August 2017, we entered into an agreement to amend our lease on approximately 28,000 square feet of office space in South Jordan, Utah. This amendment extends the term of this facility lease by five years, three months, from January 2018 to March 2023. As of December 31, 2017, future minimum lease payments under this lease amendment totaled approximately $3.4 million over the remaining term of the lease.

Total rent expense under all operating leases was approximately $5.4 million, $4.5 million and $4.6 million for the years ended December 31, 2015, 2016 and 2017, respectively.

Service and Licensing Obligations

We have entered into service and licensing agreements with third party vendors to provide various services, including network access, equipment maintenance and software licensing. The terms of these services and licensing agreements are generally up to three years. As the benefits of these agreements are experienced uniformly over the applicable contractual periods, we record the related service and licensing expenses on a straight-line basis, although actual cash payment obligations under certain of these agreements fluctuate over the terms of the agreements.

The following table presents a summary of our future minimum payments under non-cancellable operating lease agreements and contractual service and licensing obligations as of December 31, 2017 (in thousands):



Years Ending December 31,	Operating Lease Obligations		Service and Licensing Obligations		Total Obligations
2018	$	3,617	$	1,998	$	5,615
2019	2,996		861		3,857
2020	2,994		330		3,324
2021	1,457		—		1,457
2022	1,501		—		1,501
Thereafter	651		—		651
Total	$	13,216	$	3,189	$	16,405

Operating Segments, Geographic Information and Significant Customers

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Operating Segments, Geographic Information And Significant Customers

Operating Segments, Geographic Information and Significant Customers

Operating Segments

The following table presents summary results of our operating segments for the year ended December 31, 2015, 2016 and 2017 (in thousands):



	Year Ended December 31,
	2015			2016			2017
Revenue
Medicare	$	98,038		$	122,156		$	142,448
Individual, Family and Small Business	105,309			71,168			48,258
Total revenue	$	203,347		$	193,324		$	190,706

Segment profit
Medicare segment profit	$	13,598		$	10,394		$	22,137
Individual, Family and Small Business segment profit	38,654			33,050			9,573
Total segment profit	52,252			43,444			31,710
Corporate	(25,135		)	(29,073		)	(26,970		)
Stock-based compensation expense	(6,889		)	(7,266		)	(9,694		)
Depreciation and amortization	(4,148		)	(3,539		)	(2,837		)
Restructuring (charge) benefit	(4,541		)	297			—
Acquisition costs	—			—			(621		)
Amortization of intangible assets	(1,153		)	(1,040		)	(1,040		)
Other income, net	1,285			1,149			1,182
Income (loss) before provision (benefit) for income taxes	$	11,671		$	3,972		$	(8,270	)

There are no internal revenue transactions between our operating segments. Our CODM does not separately evaluate assets by segment, and therefore assets by segment are not presented.

Geographic Information

Our long-lived assets consisted primarily of property and equipment, internally-developed software, goodwill and other indefinite-lived intangible assets and finite-lived intangible assets. Our long-lived assets are attributed to the geographic location in which they are located. Long-lived assets by geographical area as of December 31, 2016 and December 31, 2017 were as follows (in thousands):



	December 31, 2016		December 31, 2017
United States	$	32,162	$	32,876
China	391		550
Total	$	32,553	$	33,426

Significant Customers

Substantially all revenue for the years ended December 31, 2015, 2016 and 2017 was generated from customers located in the United States. Carriers representing 10% or more of our total revenue for the years ended December 31, 2015, 2016 and 2017 are presented in the table below:



	Year Ended December 31,
	2015		2016		2017
Humana	23	%	22	%	20	%
UnitedHealthcare ¹	12	%	19	%	23	%
Aetna ²	11	%	11	%	10	%


(1)	UnitedHealthcare also includes other carriers owned by UnitedHealthcare.


(2)	Aetna includes other carriers owned by Aetna.

Selected Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2017

Selected Quarterly Financial Information [Abstract]

Selected Quarterly Financial Data (Unaudited)

Selected summarized quarterly financial information for 2016 and 2017 is as follows (in thousands, except per share amounts):



For the Year Ended December 31, 2017	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Year
Revenue	$	41,556		$	34,566		$	31,466		$	83,118		$	190,706
Income (loss) from operations	(4,113		)	(10,468		)	(15,673		)	20,802			(9,452		)
Net income (loss)	1,080			(1,506		)	(2,176		)	28,028			25,426
Net income (loss) per share:
Basic	$	0.06		$	(0.08	)	$	(0.12	)	$	1.50		$	1.37
Diluted	$	0.06		$	(0.08	)	$	(0.12	)	$	1.47		$	1.33

For the Year Ended December 31, 2016	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Year
Revenue	$	51,411		$	35,856		$	28,642		$	77,415		$	193,324
Income (loss) from operations	3,149			(6,989		)	(10,078		)	16,741			2,823
Net income (loss)	(795		)	1,495			3,448			(3,844		)	304
Net income (loss) per share:
Basic	$	(0.04	)	$	0.08		$	0.19		$	(0.21	)	$	0.02
Diluted	$	(0.04	)	$	0.08		$	0.19		$	(0.21	)	$	0.02

Adoption Impact of New Revenue Standard

12 Months Ended

Dec. 31, 2017

Accounting Changes and Error Corrections [Abstract]

Adoption Impact of New Revenue Standard

As discussed in Note 1 Summary of Significant Accounting Policies, the FASB issued ASU 2014-09 in

2014, which, as amended, created ASC 606. The core principle of ASC 606 is that an entity shall recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard also contains significant new disclosure requirements regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. We adopted ASC 606 effective January 1, 2018, on a retrospective basis. We have applied the standard to all contracts.

We reviewed our sales compensation plans, which are directed at converting leads into approved members, and concluded that they are fulfillment costs and not costs to obtain a contract with a health insurance carrier, which we define as our customer. Additionally, we reviewed compensation plans related to personnel responsible for identifying new health insurance carriers and entering into contracts with new health insurance carriers and concluded that no incremental costs are incurred to obtain such contracts.

The following tables present the impact of the adoption of ASC 606 on our previously reported historical results for the periods presented (in thousands):



2016 Balance Sheet Impact
	December 31, 2016
	As Reported			ASC 606 Adoption Adjustment			As Adjusted
Assets
Current assets:
Cash and cash equivalents	$	61,781		$	—		$	61,781
Accounts receivable	9,213			(7,265		)	1,948
Commissions receivable - current	—			104,726			104,726
Prepaid expenses and other current assets	5,148			(1,071		)	4,077
Total current assets	76,142			96,390			172,532
Commissions receivable - non-current	—			153,051			153,051
Property and equipment, net	5,608			—			5,608
Other assets	4,473			(666		)	3,807
Intangible assets, net	8,580			—			8,580
Goodwill	14,096			—			14,096
Total assets	$	108,899		$	248,775		$	357,674
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	5,112		$	—		$	5,112
Accrued compensation and benefits	10,920			—			10,920
Accrued marketing expenses	7,158			900			8,058
Other current liabilities	4,734			(3,086		)	1,648
Total current liabilities	27,924			(2,186		)	25,738
Deferred income taxes - non-current	—			75,403			75,403
Other non-current liabilities	3,374			879			4,253
Stockholders' equity:
Common stock	29			—			29
Additional paid-in-capital	272,778			—			272,778
Treasury stock, at cost	(199,998		)	—			(199,998		)
Retained earnings	4,616			174,682			179,298
Accumulated other comprehensive income	176			(3		)	173
Total stockholders' equity	77,601			174,679			252,280
Total liabilities and stockholders' equity	$	108,899		$	248,775		$	357,674



2017 Balance Sheet Impact
	December 31, 2017
	As Reported			ASC 606 Adoption Adjustment			As Adjusted
Assets
Current assets:
Cash and cash equivalents	$	40,293		$	—		$	40,293
Accounts receivable	9,894			(8,419		)	1,475
Commissions receivable - current	—			109,666			109,666
Prepaid expenses and other current assets	4,845			(540		)	4,305
Total current assets	55,032			100,707			155,739
Commissions receivable - non-current	—			169,751			169,751
Property and equipment, net	4,705			—			4,705
Other assets	7,317			(30		)	7,287
Intangible assets, net	7,540			—			7,540
Goodwill	14,096			—			14,096
Total assets	$	88,690		$	270,428		$	359,118
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	3,246		$	—		$	3,246
Accrued compensation and benefits	15,498			—			15,498
Accrued marketing expenses	4,088			605			4,693
Other current liabilities	3,815			(1,807		)	2,008
Total current liabilities	26,647			(1,202		)	25,445
Deferred income taxes - non-current	—			45,089			45,089
Other non-current liabilities	900			1,020			1,920
Stockholders' equity:
Common stock	30			—			30
Additional paid-in-capital	281,706			—			281,706
Treasury stock, at cost	(199,998		)	—			(199,998		)
Retained earnings	(20,796		)	225,520			204,724
Accumulated other comprehensive income	201			1			202
Total stockholders' equity	61,143			225,521			286,664
Total liabilities and stockholders' equity	$	88,690		$	270,428		$	359,118



2015 Income Statement Impact
	Year Ended December 31, 2015
Statement of Operations	As Reported			ASC 606 Adoption Adjustment			As Adjusted
Revenue:
Commission	$	171,257		$	13,676		$	184,933
Other	18,284			130			18,414
Total revenue	189,541			13,806			203,347
Operating costs and expenses:
Cost of revenue	4,178			(2,231		)	1,947
Marketing and advertising	75,571			—			75,571
Customer care and enrollment	43,159			—			43,159
Technology and content	36,351			—			36,351
General and administrative	30,239			—			30,239
Restructuring charges (benefit)	4,541			—			4,541
Amortization of intangible assets	1,153			—			1,153
Total operating costs and expenses	195,192			(2,231		)	192,961
Income (loss) from operations	(5,651		)	16,037			10,386
Other income, net	45			1,240			1,285
Income (loss) before income taxes	(5,606		)	17,277			11,671
Provision (benefit) for income taxes	(843		)	8,550			7,707
Net income (loss)	$	(4,763	)	$	8,727		$	3,964

Net income (loss) per basic share	$	(0.26	)	$	0.48		$	0.22
Net income (loss) per diluted share	$	(0.26	)	$	0.48		$	0.22



2016 Income Statement Impact
	Year Ended December 31, 2016
Statement of Operations	As Reported			ASC 606 Adoption Adjustment			As Adjusted
Revenue:
Commission	$	170,850		$	6,384		$	177,234
Other	16,110			(20		)	16,090
Total revenue	186,960			6,364			193,324
Operating costs and expenses:
Cost of revenue	3,176			(2,314		)	862
Marketing and advertising	72,213			—			72,213
Customer care and enrollment	48,718			—			48,718
Technology and content	32,749			—			32,749
General and administrative	35,216			—			35,216
Restructuring charges (benefit)	(297		)	—			(297		)
Amortization of intangible assets	1,040			—			1,040
Total operating costs and expenses	192,815			(2,314		)	190,501
Income (loss) from operations	(5,855		)	8,678			2,823
Other income, net	102			1,047			1,149
Income (loss) before income taxes	(5,753		)	9,725			3,972
Provision (benefit) for income taxes	(871		)	4,539			3,668
Net income (loss)	$	(4,882	)	$	5,186		$	304

Net income (loss) per basic share	$	(0.27	)	$	0.29		$	0.02
Net income (loss) per diluted share	$	(0.27	)	$	0.29		$	0.02



2017 Income Statement Impact
	Year Ended December 31, 2017
Statement of Operations	As Reported			ASC 606 Adoption Adjustment			As Adjusted
Revenue:
Commission	$	158,424		$	18,459		$	176,883
Other	13,931			(108		)	13,823
Total revenue	172,355			18,351			190,706
Operating costs and expenses:
Cost of revenue	2,273			(1,691		)	582
Marketing and advertising	65,874			—			65,874
Customer care and enrollment	59,183			—			59,183
Technology and content	32,889			—			32,889
General and administrative	39,969			—			39,969
Acquisition costs	621			—			621
Amortization of intangible assets	1,040			—			1,040
Total operating costs and expenses	201,849			(1,691		)	200,158
Income (loss) from operations	(29,494		)	20,042			(9,452		)
Other income, net	327			855			1,182
Income (loss) before income taxes	(29,167		)	20,897			(8,270		)
Benefit from income taxes	(3,755		)	(29,941		)	(33,696		)
Net income (loss)	$	(25,412	)	$	50,838		$	25,426

Net income (loss) per basic share	$	(1.37	)	$	2.74		$	1.37
Net income (loss) per diluted share	$	(1.37	)	$	2.70		$	1.33



2015 Operating Segment Impact
	Year Ended December 31, 2015
	As Reported			ASC 606 Adoption Adjustment			As Adjusted
Revenue
Medicare segment revenue	$	63,163		$	34,875		$	98,038
Individual, Family and Small Business segment revenue	126,378			(21,069		)	105,309
Total revenue	$	189,541		$	13,806		$	203,347

Segment profit (loss)
Medicare segment profit (loss)	$	(23,284	)	$	36,882		$	13,598
Individual, Family and Small Business segment profit	59,499			(20,845		)	38,654
Total segment profit	36,215			16,037			52,252
Corporate	(25,135		)	—			(25,135		)
Stock-based compensation expense	(6,889		)	—			(6,889		)
Depreciation and amortization	(4,148		)	—			(4,148		)
Restructuring (charge) benefit	(4,541		)	—			(4,541		)
Amortization of intangible assets	(1,153		)	—			(1,153		)
Other income, net	45			1,240			1,285
Income (loss) before provision (benefit) for income taxes	$	(5,606	)	$	17,277		$	11,671



2016 Operating Segment Impact
	Year Ended December 31, 2016
	As Reported			ASC 606 Adoption Adjustment			As Adjusted
Revenue
Medicare segment revenue	$	80,269		$	41,887		$	122,156
Individual, Family and Small Business segment revenue	106,691			(35,523		)	71,168
Total revenue	$	186,960		$	6,364		$	193,324

Segment profit (loss)
Medicare segment profit (loss)	$	(33,141	)	$	43,535		$	10,394
Individual, Family and Small Business segment profit	67,905			(34,855		)	33,050
Total segment profit	34,764			8,680			43,444
Corporate	(29,071		)	(2		)	(29,073		)
Stock-based compensation expense	(7,266		)	—			(7,266		)
Depreciation and amortization	(3,539		)	—			(3,539		)
Restructuring (charge) benefit	297			—			297
Amortization of intangible assets	(1,040		)	—			(1,040		)
Other income, net	102			1,047			1,149
Income (loss) before provision (benefit) for income taxes	$	(5,753	)	$	9,725		$	3,972



2017 Operating Segment Impact
	Year Ended December 31, 2017
	As Reported			ASC 606 Adoption Adjustment			As Adjusted
Revenue
Medicare segment revenue	$	102,584		$	39,864		$	142,448
Individual, Family and Small Business segment revenue	69,771			(21,513		)	48,258
Total revenue	$	172,355		$	18,351		$	190,706

Segment profit (loss)
Medicare segment profit (loss)	$	(18,760	)	$	40,897		$	22,137
Individual, Family and Small Business segment profit	30,427			(20,854		)	9,573
Total segment profit	11,667			20,043			31,710
Corporate	(26,969		)	(1		)	(26,970		)
Stock-based compensation expense	(9,694		)	—			(9,694		)
Depreciation and amortization	(2,837		)	—			(2,837		)
Acquisition costs	(621		)				(621		)
Amortization of intangible assets	(1,040		)	—			(1,040		)
Other income, net	327			855			1,182
Income (loss) before provision (benefit) for income taxes	$	(29,167	)	$	20,897		$	(8,270	)



2015 Cash Flow Impact - Operating Activities
	Year Ended December 31, 2015
	As Reported			ASC 606 Adoption Adjustment			As Adjusted
Operating activities
Net income (loss)	$	(4,763	)	$	8,727		$	3,964
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	4,148			—			4,148
Amortization of internally developed software	627			—			627
Amortization of book-of-business consideration	2,006			(2,006		)	—
Amortization of intangible assets	1,153			—			1,153
Stock-based compensation expense	7,002			—			7,002
Deferred income taxes	101			8,550			8,651
Other non-cash items	106			—			106
Changes in operating assets and liabilities:
Accounts receivable	(1,447		)	397			(1,050		)
Commissions receivable	—			(15,050		)	(15,050		)
Prepaid expenses and other assets	997			—			997
Accounts payable	(2,949		)	—			(2,949		)
Accrued compensation and benefits	6,180			—			6,180
Accrued marketing expenses	1,991			(126		)	1,865
Deferred revenue	(642		)	(128		)	(770		)
Accrued restructuring charges	433			—			433
Other current liabilities	(1,247		)	(364		)	(1,611		)
Net cash provided by operating activities	$	13,696		$	—		$	13,696



2016 Cash Flow Impact - Operating Activities
	Year Ended December 31, 2016
	As Reported			ASC 606 Adoption Adjustment			As Adjusted
Operating activities
Net income (loss)	$	(4,882	)	$	5,186		$	304
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,539			—			3,539
Amortization of internally developed software	936			—			936
Amortization of book-of-business consideration	1,649			(1,649		)	—
Amortization of intangible assets	1,040			—			1,040
Stock-based compensation expense	7,266			—			7,266
Deferred income taxes	114			4,538			4,652
Other non-cash items	(233		)	90			(143		)
Changes in operating assets and liabilities:
Accounts receivable	434			1,129			1,563
Commissions receivable	—			(8,032		)	(8,032		)
Prepaid expenses and other assets	(486		)	—			(486		)
Accounts payable	2,227			—			2,227
Accrued compensation and benefits	(3,466		)	—			(3,466		)
Accrued marketing expenses	(3,540		)	(366		)	(3,906		)
Deferred revenue	567			20			587
Accrued restructuring charges	(433		)	—			(433		)
Other current liabilities	(649		)	(916		)	(1,565		)
Net cash provided by operating activities	$	4,083		$	—		$	4,083



2017 Cash Flow Impact - Operating Activities
	Year Ended December 31, 2017
	As Reported			ASC 606 Adoption Adjustment			As Adjusted
Operating activities
Net income (loss)	$	(25,412	)	$	50,838		$	25,426
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	2,837			—			2,837
Amortization of internally developed software	1,464			—			1,464
Amortization of book-of-business consideration	1,167			(1,167		)	—
Amortization of intangible assets	1,040			—			1,040
Stock-based compensation expense	9,694			—			9,694
Deferred income taxes	(401		)	(29,940		)	(30,341		)
Other non-cash items	(101		)	—			(101		)
Changes in operating assets and liabilities:
Accounts receivable	(681		)	1,154			473
Commissions receivable	—			(21,640		)	(21,640		)
Prepaid expenses and other assets	(1,933		)	—			(1,933		)
Accounts payable	(1,866		)	—			(1,866		)
Accrued compensation and benefits	4,578			—			4,578
Accrued marketing expenses	(3,070		)	(295		)	(3,365		)
Deferred revenue	(574		)	108			(466		)
Accrued restructuring charges	—			—			—
Other current liabilities	(2,283		)	942			(1,341		)
Net cash used in operating activities	$	(15,541	)	$	—		$	(15,541	)

Subsequent Events	12 Months Ended
Subsequent Events	Dec. 31, 2017
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events GoMedigap Acquisition On January 22, 2018, we completed our acquisition of all outstanding membership interests of Wealth, Health and Life Advisors, LLC, more commonly known as GoMedigap, a technology-enabled provider of Medicare Supplement enrollment services. The acquisition price primarily consisted of cash of $15.0 million, less $0.1 million cash acquired, and approximately 294,637 shares of our common stock. In addition, we are obligated to pay an additional $20 million in cash and 589,275 shares of our common stock, subject to the terms of the acquisition agreement and upon final determination of the achievement of certain milestones in 2018 and 2019. Restructuring Activities On February 25, 2018, our Board of Directors approved a plan to close our sales call center in Massachusetts and to terminate the employment of other employees in other locations. As part of this plan, we expect to eliminate approximately 110 full-time positions, representing approximately 10% of our workforce, primarily within customer care and enrollment. We expect to incur approximately $2.0 million to $2.4 million for employee termination benefits and related costs as well as approximately $0.3 million to $0.5 million in contract termination and other restructuring charges. Substantially all of the restructuring charges are expected to result in cash expenditures. These restructuring charges were recorded in the first half of 2018, when the activities comprising the plan were completed. Line of Credit Agreement On September 17, 2018, we entered into a Credit Agreement with Royal Bank of Canada (“RBC”), as administrative agent and collateral agent (the “Credit Agreement”). The Credit Agreement provides for a $40.0 million secured asset-backed revolving credit facility with a $5.0 million letter of credit subfacility. The commitments under the Credit Agreement expire on September 17, 2021. The borrowing base under the Credit Agreement is comprised of an amount equal to (a) the lesser of (i) eighty percent (80%) of Eligible Commissions Receivables (as defined in the Credit Agreement) we actually collected by during the immediately preceding period of three months or (ii) eighty percent (80%) of our Eligible Commission Receivables for the immediately succeeding period of three months, plus (b) fifty percent (50%) of our Eligible Commission Receivables for the immediately succeeding period of six months (excluding the immediately succeeding period of three months), in each case subject to reserves established by RBC (the “Borrowing Base”). The proceeds of the loans under the Credit Agreement may be used for working capital and general corporate purposes. The Borrowers have the right to prepay the loans under the Credit Agreement in whole or in part at any time without penalty. Subject to availability under the Borrowing Base, amounts repaid may be reborrowed. Availability under the credit facility is up to the lesser of $40.0 million or the Borrowing Base, which may be reduced from time to time pursuant to the Credit Agreement. In addition, the Credit Agreement contains a financial covenant requiring that we maintain Excess Availability (as defined in the Credit Agreement) at or above $6.0 million at any time. On November 23, 2018, we borrowed $5.0 million under the credit facility.

Summary of Business and Significant Accounting Policies (Policy)

12 Months Ended

Dec. 31, 2017

Recent Accounting Pronouncements

Description of Business

Principles of Consolidation

Operating Segments

•Medicare and

•Individual, Family and Small Business

Use of Estimates

Reclassifications

Reclassifications — For presentation purposes, certain prior period amounts have been reclassified to conform to the reporting in the current period financial statements.

Cash and Cash Equivalents

Cash Equivalents — We consider all investments with an original maturity of 90 days or less from the date of purchase to be cash equivalents. Cash and cash equivalents are stated at fair value.

Property and Equipment



Computer equipment and software		3 to 5 years
Office equipment and furniture		5 years
Leasehold improvements		Lesser of useful life (typically 5 to 10 years) or related lease term

Maintenance and minor replacements are expensed as incurred.

Business Combinations

Goodwill and Intangible Assets

Other Long Lived Assets

Revenue Recognition

•


•	Determination of the transaction price. The transaction price is determined based on the consideration to which we will be entitled in exchange for transferring goods or services to the customer.

•


•	Recognition of revenue when, or as, we satisfy a performance obligation. We satisfy performance obligations either over time or at a point in time, as discussed in further detail below. Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised good or service to the customer.



	Year Ended December 31,
	2015		2016		2017
Medicare
Medicare Advantage	7	%	7	%	7	%
Medicare Supplement	5	%	5	%	5	%
Medicare Part D	5	%	5	%	5	%

Individual and Family
Non-Qualified Health Plans	15	%	15	%	15	%
Qualified Health Plans	20	%	20	%	20	%

Ancillary	10	%	10	%	10	%

Small Business	—		—		—

Refer to Note 10 - Adoption Impact of New Revenue Standard for discussion of our adoption of ASC 606.

Deferred Revenue

Book-of-business Transfers

Cost of Revenue

Marketing and Advertising Expense

Research and Development Expense

Deferred Contract Cost

Internal-Use Software and Website Development Costs

Stock-Based Compensation

401(k) Plan

Income Taxes

Seasonality

Summary of Business and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Property, Plant and Equipment

Depreciation and amortization is computed using the straight-line method based on estimated useful lives as follows:



Computer equipment and software		3 to 5 years
Office equipment and furniture		5 years
Leasehold improvements		Lesser of useful life (typically 5 to 10 years) or related lease term

Balance Sheet Accounts (Tables)

12 Months Ended

Dec. 31, 2017

Schedule Of Cash And Cash Equivalents

As of December 31, 2016 and December 31, 2017, our cash and cash equivalent balances were invested as follows (in thousands):



	December 31, 2016		December 31, 2017
Cash	$	4,066	$	5,098
Money market funds	57,715		35,195
Total cash and cash equivalents	$	61,781	$	40,293

Schedule Of Prepaid Expenses And Other Current Assets

Prepaid Expenses and Other Current Assets — Prepaid expenses and other current assets consisted of the following (in thousands):



	December 31, 2016		December 31, 2017
Prepaid maintenance contracts	$	2,026	$	1,944
Prepaid insurance	541		490
Prepaid rent	370		311
Other current assets	1,140		1,560
Prepaid expenses and other current assets	$	4,077	$	4,305

Schedule Of Property And Equipment

Property and Equipment — Property and equipment consisted of the following (in thousands):



	December 31, 2016			December 31, 2017
Computer equipment and software	$	17,524		$	17,112
Office equipment and furniture	3,490			3,583
Leasehold improvements	3,173			3,156
Property and equipment, gross	24,187			23,851
Less accumulated depreciation and amortization	(18,579		)	(19,146		)
Property and equipment, net	$	5,608		$	4,705

Schedule Of Other Assets

Other assets consisted of the following (in thousands):



	December 31, 2016		December 31, 2017
Capitalized project costs	$	2,735	$	4,481
Security deposits	589		545
Deferred tax assets	204		232
Other assets	279		2,029
Other assets	$	3,807	$	7,287

Schedule Of Intangible Assets

The carrying amounts, accumulated amortization, net carrying value and weighted average remaining life of our definite-lived amortizable intangible assets, as well as our indefinite-lived intangible trademarks, are presented in the tables below for (dollars in thousands, weighted-average useful life is as of December 31, 2017):



	December 31, 2016							December 31, 2017
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Remaining Life
Technology	$	1,700	$	(1,700	)	$	—	$	1,700	$	(1,700	)	$	—	0 years
Pharmacy and customer relationships	10,100		(6,934		)	3,166		10,100		(7,884		)	2,216		2.3 years
Trade names, trademarks and website addresses	907		(607		)	300		907		(697		)	210		2.3 years
Total intangible assets subject to amortization	$	12,707	$	(9,241	)	$	3,466	$	12,707	$	(10,281	)	$	2,426
Indefinite-lived trademarks and domain names						5,114							5,114		Indefinite
Intangible assets						$	8,580						$	7,540

Schedule Of Intangible Assets Future Amortization Expense

As of December 31, 2017, expected amortization expense in future periods is as follows (in thousands):



Years Ending December 31,	Pharmacy and Customer Relationships		Trade Names, Trademarks and Website Addresses		Total
2018	$	950	$	90	$	1,040
2019	950		90		1,040
2020	316		30		346
Total	$	2,216	$	210	$	2,426

Schedule Of Other Current Liabilities

Other current liabilities consisted of the following (in thousands):



	December 31, 2016		December 31, 2017
Deferred revenue	$	851	$	385
Professional fees	307		1,012
Other accrued expenses	490		611
Total other current liabilities	$	1,648	$	2,008

Schedule Of Non-Current Liabilities

Non-current liabilities consisted of the following (in thousands):



	December 31, 2016		December 31, 2017
Deferred rent – non-current	$	830	$	724
Accrued affiliate commissions	1,322		1,092
Income tax payable – non-current	1,978		19
Other non-current liabilities	123		85
Total other non-current liabilities	$	4,253	$	1,920

Fair Value Measurements Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2017

Fair Value Disclosures [Abstract]

Classifications of Fair Value Hierarchy

We classify the inputs used to measure fair value into the following hierarchy:



Level 1		Unadjusted quoted prices in active markets for identical assets or liabilities
Level 2		Unadjusted quoted prices in active markets for similar assets or liabilities, or
		Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or
		Inputs other than quoted prices that are observable for the asset or liability
Level 3		Unobservable inputs for the asset or liability

Summary of Financial Assets Measured at Fair Value on a Recurring Basis

The following table is a summary of financial assets measured at fair value on a recurring basis and their classification within the fair value hierarchy (in thousands).



	December 31, 2016						December 31, 2017
	Carrying Value		Level 1		Total		Carrying Value		Level 1		Total
Assets
Money market funds	$	57,715	$	57,715	$	57,715	$	35,195	$	35,195	$	35,195

Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2017

Stockholders' Equity Note [Abstract]

Common Stock Shares Reserved For Future Issuance

We generally issue previously unissued common stock upon the exercise of stock options, the vesting of restricted stock units and upon granting of restricted common stock awards; however we may reissue previously acquired treasury shares to satisfy these future issuances. Shares of authorized but unissued common stock reserved for future issuance were as follows (in thousands):



	December 31, 2017
Common stock:
Stock options issued and outstanding	983
Restricted stock units issued and outstanding	1,745
Shares available for grant	1,409
Total shares reserved	4,137

Schedule Of Stock Option Share Activity Under Stock Plans

The following table summarizes activity under our 2014 Plan for the year ended December 31, 2017 (in thousands):



	Shares Available for Grant ¹
Shares available for grant December 31, 2016 ¹	2,267
Restricted stock units granted ²	(860	)
Options granted ³	(330	)
Restricted stock units cancelled ⁴	318
Options cancelled	14
Shares available for grant December 31, 2017 ¹	1,409


(1)	Shares available for grant do not include treasury stock shares that could be granted if we determined to do so.


(2)	Includes grants of restricted stock units with service, performance-based or market-based vesting criteria.


(3)	Includes grants of stock options with service, performance-based or market-based vesting criteria.


(4)	Includes cancelled restricted stock units with service, performance-based or market-based vesting criteria.

Schedule Of Activity Under Stock Plans

The following table summarizes stock option activity under the Stock Plans (in thousands, except weighted-average exercise price and weighted-average remaining contractual life data):



	Number of Stock Options ¹		Weighted Average Exercise Price		Weighted-Average Remaining Contractual Life (years)	Aggregate Intrinsic Value ²
Balance outstanding at December 31, 2016	975		$	18.14	3.5	$	31
Granted	330		$	16.95
Exercised	(69	)	$	14.96
Cancelled	(253	)	$	20.43
Balance outstanding at December 31, 2017	983		$	17.38	4.6	$	2,522
Vested and expected to vest at December 31, 2017	931		$	17.44	4.5	$	2,401
Exercisable at December 31, 2017	405		$	20.34	2.6	$	857


(1)	Includes certain stock options with service, performance-based or market-based vesting criteria.


(2)	The aggregate intrinsic value is calculated as the product between eHealth’s closing stock price as of December 31, 2016 and December 31, 2017 and the exercise price of in-the-money options as of those dates.

The following table provides information pertaining to our stock options for the year ended December 31, 2015, 2016 and 2017 (in thousands, except weighted-average fair values):



	Year Ended December 31,
	2015		2016		2017
Weighted average fair value of options granted	$	5.67	$	4.46	$	9.03
Total fair value of options vested	$	1,602	$	1,243	$	799
Intrinsic value of options exercised	$	546	$	4	$	430

Schedule Of Restricted Stock Unit Activity Under Stock Plans

The following table summarizes restricted stock unit activity under the Stock Plans (in thousands, except weighted-average grant date fair value and weighted-average remaining contractual life data):



	Number of Restricted Stock Units ¹		Weighted-Average Grant Date Fair Value		Weighted-Average Remaining Service Period	Aggregate Intrinsic Value ²
Unvested as of December 31, 2016	1,523		$	12.83	2.8	$	13,901
Granted	860		$	16.28
Vested	(318	)	$	15.19
Cancelled	(320	)	$	12.17
Unvested as of December 31, 2017	1,745		$	14.24	2.3	$	30,313


(1)	Includes certain restricted stock units with service, performance-based or market-based vesting criteria.


(2)	The aggregate intrinsic value is calculated as the difference of our closing stock price as of December 31, 2016 and December 31, 2017 multiplied by the number of restricted stock units outstanding as of December 31, 2016 and December 31, 2017, respectively.

Schedule Of Fair Value Of Stock Options Granted, Valuation Assumptions



	Year Ended December 31,
	2015	2016	2017
Expected term	4.3	4.4	4.3
Expected volatility	64.1%	65.4%	69.8%
Expected dividend yield	—%	—%	—%
Risk-free interest rate	1.2%	1.1%	1.8%

Schedule Of Fair Value Of Market-Based Stock Unit Awards, Valuation Assumptions

The weighted-average fair value of the market-based options and restricted stock units was determined using the Monte Carlo simulation model using the following weighted average assumptions:



	Year Ended December 31,
	2015	2016	2017
Expected term	2.6	2.1	1.6
Expected volatility	64.7%	67.9%	70.9%
Expected dividend yield	—%	—%	—%
Risk-free interest rate	1.1%	1.1%	1.7%
Weighted average grant date fair value	$6.69	$9.64	$9.42

Schedule Of Stock-Based Compensation Expense By Award Type

The following table summarizes stock-based compensation expense recorded during the years ended December 31, 2015, 2016 and 2017 (in thousands):



	Year Ended December 31,
	2015		2016		2017
Common stock options	$	1,522	$	1,015	$	1,863
Restricted stock units	5,480		6,251		7,831
Total stock-based compensation expense	$	7,002	$	7,266	$	9,694

Schedule Of Stock-Based Compensation Expense By Operating Function

The following table summarizes stock-based compensation expense by operating function for the years ended December 31, 2015, 2016 and 2017 (in thousands):



	Year Ended December 31,
	2015		2016		2017
Marketing and advertising	$	1,950	$	1,237	$	1,033
Customer care and enrollment	477		497		418
Technology and content	1,728		1,836		1,410
General and administrative	2,734		3,696		6,833
Restructuring charges	113		—		—
Total stock-based compensation expense	$	7,002	$	7,266	$	9,694

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

Income Tax Disclosure [Abstract]

Schedule Of Components Of Income Tax Expense

The components of our income (loss) before benefit for income taxes were as follows (in thousands):



	Year Ended December 31,
	2015		2016		2017
United States	$	11,236	$	3,087	$	(9,242	)
Foreign	435		885		972
Income (loss) before provision for income taxes	$	11,671	$	3,972	$	(8,270	)

Schedule Of Income Before Income Tax, Domestic And Foreign

The provision (benefit) for income taxes consisted of the following (in thousands):



	Year Ended December 31,
	2015			2016			2017
Current:
Federal	$	(584	)	$	(948	)	$	(275	)
State	(457		)	(214		)	(1,433		)
Foreign	97			178			179
Total current	(944		)	(984		)	(1,529		)
Deferred:
Federal	8,037			4,306			(28,161		)
State	644			361			(3,992		)
Foreign	(30		)	(15		)	(14		)
Total deferred	8,651			4,652			(32,167		)
Provision (benefit) for income taxes	$	7,707		$	3,668		$	(33,696	)

Schedule Of Effective Income Tax Rate Reconciliation

The following table provides a reconciliation of the federal statutory income tax rate to our effective tax rate:



	Year Ended December 31,
	2015		2016		2017
Tax provision (benefit) at U.S. statutory rate	35.0	%	35.0	%	35.0	%
State income taxes, net of federal benefit	10.5		14.1		31.7
Non-qualified stock option shortfalls (windfalls), net	15.2		23.0		1.9
Stock-based compensation	11.0		18.3		(9.7	)
Lobbying	2.6		8.9		(9.1	)
Research and development credits	(9.7	)	(20.4	)	(1.5	)
Tax reform - tax rate change	—		—		355.9
Foreign income tax and income inclusion	—		10.9		2.7
Other	1.4		2.4		0.7
Effective tax rate	66.0	%	92.2	%	407.6	%

Schedule Of Deferred Tax Assets And Liabilities



	December 31, 2016			December 31, 2017
Deferred tax assets:
Accruals and reserves	$	2,242		$	2,499
Stock-based compensation	2,960			2,443
Intangible assets	1,464			448
Net operating losses	9,337			12,055
Tax credits	4,399			3,569
Other	70			178
Total deferred tax assets	20,472			21,192
Deferred tax liabilities:
Commissions receivable	(93,538		)	(64,911		)
Intangible assets	(2,133		)	(1,083		)
Fixed assets	—			(55		)
Total deferred tax liabilities	(95,671		)	(66,049		)
Net deferred tax liabilities	$	(75,199	)	$	(44,857	)

Schedule Of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of our unrecognized tax benefits is as follows (in thousands):



	Unrecognized Tax Benefits
Balance at December 31, 2014	$	6,756
Increases based on tax positions related to the prior year	344
Decreases based on tax positions related to the prior year	(24		)
Lapse of statute of limitations	(1,301		)
Additions based on tax positions related to the current year	409
Balance at December 31, 2015	$	6,184
Lapse of statute of limitations	(1,236		)
Additions based on tax positions related to the current year	305
Balance at December 31, 2016	5,253
Decreases based on tax positions related to the prior year	(862		)
Lapse of statute of limitations	(1,637		)
Additions based on tax positions related to the current year	342
Balance at December 31, 2017	$	3,096

Net Loss Per Share (Tables)

12 Months Ended

Dec. 31, 2017

Earnings Per Share [Abstract]

Schedule Of Computation Of Basic And Diluted Net Income Per Share

The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share amounts):



	Year Ended December 31,
	2015		2016		2017
Basic:
Numerator:
Net income	$	3,964	$	304	$	25,426
Denominator:
Net weighted-average number of common stock shares outstanding	18,008		18,272		18,512
Net income per share—basic:	$	0.22	$	0.02	$	1.37
Diluted:
Numerator:
Net income	$	3,964	$	304	$	25,426
Denominator:
Net weighted average number of common stock shares outstanding	18,008		18,272		18,512
Dilutive effect of common stock	78		42		535
Total common stock shares used in per share calculation	18,086		18,314		19,047
Net income per share—diluted	$	0.22	$	0.02	$	1.33

Schedule Of Anti-dilutive Shares Excluded From Computation Of Net Income Per Share

The number of outstanding anti-dilutive shares that were excluded from the computation of diluted net income per share consisted of the following (in thousands):



	Year Ended December 31,
	2015	2016	2017
Common stock options	1,484	1,222	908
Restricted stock units	866	768	1,296
Total	2,350	1,990	2,204

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Schedule Of Future Minimum Rental Payments For Operating Leases



Years Ending December 31,	Operating Lease Obligations		Service and Licensing Obligations		Total Obligations
2018	$	3,617	$	1,998	$	5,615
2019	2,996		861		3,857
2020	2,994		330		3,324
2021	1,457		—		1,457
2022	1,501		—		1,501
Thereafter	651		—		651
Total	$	13,216	$	3,189	$	16,405

Operating Segments, Geographic Information and Significant Customers (Tables)

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following table presents summary results of our operating segments for the year ended December 31, 2015, 2016 and 2017 (in thousands):



	Year Ended December 31,
	2015			2016			2017
Revenue
Medicare	$	98,038		$	122,156		$	142,448
Individual, Family and Small Business	105,309			71,168			48,258
Total revenue	$	203,347		$	193,324		$	190,706

Segment profit
Medicare segment profit	$	13,598		$	10,394		$	22,137
Individual, Family and Small Business segment profit	38,654			33,050			9,573
Total segment profit	52,252			43,444			31,710
Corporate	(25,135		)	(29,073		)	(26,970		)
Stock-based compensation expense	(6,889		)	(7,266		)	(9,694		)
Depreciation and amortization	(4,148		)	(3,539		)	(2,837		)
Restructuring (charge) benefit	(4,541		)	297			—
Acquisition costs	—			—			(621		)
Amortization of intangible assets	(1,153		)	(1,040		)	(1,040		)
Other income, net	1,285			1,149			1,182
Income (loss) before provision (benefit) for income taxes	$	11,671		$	3,972		$	(8,270	)

Schedule Of Long Lived Assets By Geographical Areas

Long-lived assets by geographical area as of December 31, 2016 and December 31, 2017 were as follows (in thousands):



	December 31, 2016		December 31, 2017
United States	$	32,162	$	32,876
China	391		550
Total	$	32,553	$	33,426

Schedule Of Revenue By Major Customers

arriers representing 10% or more of our total revenue for the years ended December 31, 2015, 2016 and 2017 are presented in the table below:



	Year Ended December 31,
	2015		2016		2017
Humana	23	%	22	%	20	%
UnitedHealthcare ¹	12	%	19	%	23	%
Aetna ²	11	%	11	%	10	%


(1)	UnitedHealthcare also includes other carriers owned by UnitedHealthcare.


(2)	Aetna includes other carriers owned by Aetna.

Selected Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2017

Selected Quarterly Financial Information [Abstract]

Schedule Of Quarterly Financial Information (Unaudited)

Selected summarized quarterly financial information for 2016 and 2017 is as follows (in thousands, except per share amounts):



For the Year Ended December 31, 2017	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Year
Revenue	$	41,556		$	34,566		$	31,466		$	83,118		$	190,706
Income (loss) from operations	(4,113		)	(10,468		)	(15,673		)	20,802			(9,452		)
Net income (loss)	1,080			(1,506		)	(2,176		)	28,028			25,426
Net income (loss) per share:
Basic	$	0.06		$	(0.08	)	$	(0.12	)	$	1.50		$	1.37
Diluted	$	0.06		$	(0.08	)	$	(0.12	)	$	1.47		$	1.33

For the Year Ended December 31, 2016	First Quarter			Second Quarter			Third Quarter			Fourth Quarter			Year
Revenue	$	51,411		$	35,856		$	28,642		$	77,415		$	193,324
Income (loss) from operations	3,149			(6,989		)	(10,078		)	16,741			2,823
Net income (loss)	(795		)	1,495			3,448			(3,844		)	304
Net income (loss) per share:
Basic	$	(0.04	)	$	0.08		$	0.19		$	(0.21	)	$	0.02
Diluted	$	(0.04	)	$	0.08		$	0.19		$	(0.21	)	$	0.02

Adoption Impact of New Revenue Standard (Tables)

12 Months Ended

Dec. 31, 2017

Accounting Changes and Error Corrections [Abstract]

Schedule of Adoption of ASU 2014-09

We adopted ASC 606 effective January 1, 2018, on a retrospective basis. We have applied the standard to all contracts.

The following tables present the impact of the adoption of ASC 606 on our previously reported historical results for the periods presented (in thousands):



2016 Balance Sheet Impact
	December 31, 2016
	As Reported			ASC 606 Adoption Adjustment			As Adjusted
Assets
Current assets:
Cash and cash equivalents	$	61,781		$	—		$	61,781
Accounts receivable	9,213			(7,265		)	1,948
Commissions receivable - current	—			104,726			104,726
Prepaid expenses and other current assets	5,148			(1,071		)	4,077
Total current assets	76,142			96,390			172,532
Commissions receivable - non-current	—			153,051			153,051
Property and equipment, net	5,608			—			5,608
Other assets	4,473			(666		)	3,807
Intangible assets, net	8,580			—			8,580
Goodwill	14,096			—			14,096
Total assets	$	108,899		$	248,775		$	357,674
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	5,112		$	—		$	5,112
Accrued compensation and benefits	10,920			—			10,920
Accrued marketing expenses	7,158			900			8,058
Other current liabilities	4,734			(3,086		)	1,648
Total current liabilities	27,924			(2,186		)	25,738
Deferred income taxes - non-current	—			75,403			75,403
Other non-current liabilities	3,374			879			4,253
Stockholders' equity:
Common stock	29			—			29
Additional paid-in-capital	272,778			—			272,778
Treasury stock, at cost	(199,998		)	—			(199,998		)
Retained earnings	4,616			174,682			179,298
Accumulated other comprehensive income	176			(3		)	173
Total stockholders' equity	77,601			174,679			252,280
Total liabilities and stockholders' equity	$	108,899		$	248,775		$	357,674



2017 Balance Sheet Impact
	December 31, 2017
	As Reported			ASC 606 Adoption Adjustment			As Adjusted
Assets
Current assets:
Cash and cash equivalents	$	40,293		$	—		$	40,293
Accounts receivable	9,894			(8,419		)	1,475
Commissions receivable - current	—			109,666			109,666
Prepaid expenses and other current assets	4,845			(540		)	4,305
Total current assets	55,032			100,707			155,739
Commissions receivable - non-current	—			169,751			169,751
Property and equipment, net	4,705			—			4,705
Other assets	7,317			(30		)	7,287
Intangible assets, net	7,540			—			7,540
Goodwill	14,096			—			14,096
Total assets	$	88,690		$	270,428		$	359,118
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	3,246		$	—		$	3,246
Accrued compensation and benefits	15,498			—			15,498
Accrued marketing expenses	4,088			605			4,693
Other current liabilities	3,815			(1,807		)	2,008
Total current liabilities	26,647			(1,202		)	25,445
Deferred income taxes - non-current	—			45,089			45,089
Other non-current liabilities	900			1,020			1,920
Stockholders' equity:
Common stock	30			—			30
Additional paid-in-capital	281,706			—			281,706
Treasury stock, at cost	(199,998		)	—			(199,998		)
Retained earnings	(20,796		)	225,520			204,724
Accumulated other comprehensive income	201			1			202
Total stockholders' equity	61,143			225,521			286,664
Total liabilities and stockholders' equity	$	88,690		$	270,428		$	359,118



2015 Income Statement Impact
	Year Ended December 31, 2015
Statement of Operations	As Reported			ASC 606 Adoption Adjustment			As Adjusted
Revenue:
Commission	$	171,257		$	13,676		$	184,933
Other	18,284			130			18,414
Total revenue	189,541			13,806			203,347
Operating costs and expenses:
Cost of revenue	4,178			(2,231		)	1,947
Marketing and advertising	75,571			—			75,571
Customer care and enrollment	43,159			—			43,159
Technology and content	36,351			—			36,351
General and administrative	30,239			—			30,239
Restructuring charges (benefit)	4,541			—			4,541
Amortization of intangible assets	1,153			—			1,153
Total operating costs and expenses	195,192			(2,231		)	192,961
Income (loss) from operations	(5,651		)	16,037			10,386
Other income, net	45			1,240			1,285
Income (loss) before income taxes	(5,606		)	17,277			11,671
Provision (benefit) for income taxes	(843		)	8,550			7,707
Net income (loss)	$	(4,763	)	$	8,727		$	3,964

Net income (loss) per basic share	$	(0.26	)	$	0.48		$	0.22
Net income (loss) per diluted share	$	(0.26	)	$	0.48		$	0.22



2016 Income Statement Impact
	Year Ended December 31, 2016
Statement of Operations	As Reported			ASC 606 Adoption Adjustment			As Adjusted
Revenue:
Commission	$	170,850		$	6,384		$	177,234
Other	16,110			(20		)	16,090
Total revenue	186,960			6,364			193,324
Operating costs and expenses:
Cost of revenue	3,176			(2,314		)	862
Marketing and advertising	72,213			—			72,213
Customer care and enrollment	48,718			—			48,718
Technology and content	32,749			—			32,749
General and administrative	35,216			—			35,216
Restructuring charges (benefit)	(297		)	—			(297		)
Amortization of intangible assets	1,040			—			1,040
Total operating costs and expenses	192,815			(2,314		)	190,501
Income (loss) from operations	(5,855		)	8,678			2,823
Other income, net	102			1,047			1,149
Income (loss) before income taxes	(5,753		)	9,725			3,972
Provision (benefit) for income taxes	(871		)	4,539			3,668
Net income (loss)	$	(4,882	)	$	5,186		$	304

Net income (loss) per basic share	$	(0.27	)	$	0.29		$	0.02
Net income (loss) per diluted share	$	(0.27	)	$	0.29		$	0.02



2017 Income Statement Impact
	Year Ended December 31, 2017
Statement of Operations	As Reported			ASC 606 Adoption Adjustment			As Adjusted
Revenue:
Commission	$	158,424		$	18,459		$	176,883
Other	13,931			(108		)	13,823
Total revenue	172,355			18,351			190,706
Operating costs and expenses:
Cost of revenue	2,273			(1,691		)	582
Marketing and advertising	65,874			—			65,874
Customer care and enrollment	59,183			—			59,183
Technology and content	32,889			—			32,889
General and administrative	39,969			—			39,969
Acquisition costs	621			—			621
Amortization of intangible assets	1,040			—			1,040
Total operating costs and expenses	201,849			(1,691		)	200,158
Income (loss) from operations	(29,494		)	20,042			(9,452		)
Other income, net	327			855			1,182
Income (loss) before income taxes	(29,167		)	20,897			(8,270		)
Benefit from income taxes	(3,755		)	(29,941		)	(33,696		)
Net income (loss)	$	(25,412	)	$	50,838		$	25,426

Net income (loss) per basic share	$	(1.37	)	$	2.74		$	1.37
Net income (loss) per diluted share	$	(1.37	)	$	2.70		$	1.33



2015 Operating Segment Impact
	Year Ended December 31, 2015
	As Reported			ASC 606 Adoption Adjustment			As Adjusted
Revenue
Medicare segment revenue	$	63,163		$	34,875		$	98,038
Individual, Family and Small Business segment revenue	126,378			(21,069		)	105,309
Total revenue	$	189,541		$	13,806		$	203,347

Segment profit (loss)
Medicare segment profit (loss)	$	(23,284	)	$	36,882		$	13,598
Individual, Family and Small Business segment profit	59,499			(20,845		)	38,654
Total segment profit	36,215			16,037			52,252
Corporate	(25,135		)	—			(25,135		)
Stock-based compensation expense	(6,889		)	—			(6,889		)
Depreciation and amortization	(4,148		)	—			(4,148		)
Restructuring (charge) benefit	(4,541		)	—			(4,541		)
Amortization of intangible assets	(1,153		)	—			(1,153		)
Other income, net	45			1,240			1,285
Income (loss) before provision (benefit) for income taxes	$	(5,606	)	$	17,277		$	11,671



2016 Operating Segment Impact
	Year Ended December 31, 2016
	As Reported			ASC 606 Adoption Adjustment			As Adjusted
Revenue
Medicare segment revenue	$	80,269		$	41,887		$	122,156
Individual, Family and Small Business segment revenue	106,691			(35,523		)	71,168
Total revenue	$	186,960		$	6,364		$	193,324

Segment profit (loss)
Medicare segment profit (loss)	$	(33,141	)	$	43,535		$	10,394
Individual, Family and Small Business segment profit	67,905			(34,855		)	33,050
Total segment profit	34,764			8,680			43,444
Corporate	(29,071		)	(2		)	(29,073		)
Stock-based compensation expense	(7,266		)	—			(7,266		)
Depreciation and amortization	(3,539		)	—			(3,539		)
Restructuring (charge) benefit	297			—			297
Amortization of intangible assets	(1,040		)	—			(1,040		)
Other income, net	102			1,047			1,149
Income (loss) before provision (benefit) for income taxes	$	(5,753	)	$	9,725		$	3,972



2017 Operating Segment Impact
	Year Ended December 31, 2017
	As Reported			ASC 606 Adoption Adjustment			As Adjusted
Revenue
Medicare segment revenue	$	102,584		$	39,864		$	142,448
Individual, Family and Small Business segment revenue	69,771			(21,513		)	48,258
Total revenue	$	172,355		$	18,351		$	190,706

Segment profit (loss)
Medicare segment profit (loss)	$	(18,760	)	$	40,897		$	22,137
Individual, Family and Small Business segment profit	30,427			(20,854		)	9,573
Total segment profit	11,667			20,043			31,710
Corporate	(26,969		)	(1		)	(26,970		)
Stock-based compensation expense	(9,694		)	—			(9,694		)
Depreciation and amortization	(2,837		)	—			(2,837		)
Acquisition costs	(621		)				(621		)
Amortization of intangible assets	(1,040		)	—			(1,040		)
Other income, net	327			855			1,182
Income (loss) before provision (benefit) for income taxes	$	(29,167	)	$	20,897		$	(8,270	)



2015 Cash Flow Impact - Operating Activities
	Year Ended December 31, 2015
	As Reported			ASC 606 Adoption Adjustment			As Adjusted
Operating activities
Net income (loss)	$	(4,763	)	$	8,727		$	3,964
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	4,148			—			4,148
Amortization of internally developed software	627			—			627
Amortization of book-of-business consideration	2,006			(2,006		)	—
Amortization of intangible assets	1,153			—			1,153
Stock-based compensation expense	7,002			—			7,002
Deferred income taxes	101			8,550			8,651
Other non-cash items	106			—			106
Changes in operating assets and liabilities:
Accounts receivable	(1,447		)	397			(1,050		)
Commissions receivable	—			(15,050		)	(15,050		)
Prepaid expenses and other assets	997			—			997
Accounts payable	(2,949		)	—			(2,949		)
Accrued compensation and benefits	6,180			—			6,180
Accrued marketing expenses	1,991			(126		)	1,865
Deferred revenue	(642		)	(128		)	(770		)
Accrued restructuring charges	433			—			433
Other current liabilities	(1,247		)	(364		)	(1,611		)
Net cash provided by operating activities	$	13,696		$	—		$	13,696



2016 Cash Flow Impact - Operating Activities
	Year Ended December 31, 2016
	As Reported			ASC 606 Adoption Adjustment			As Adjusted
Operating activities
Net income (loss)	$	(4,882	)	$	5,186		$	304
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,539			—			3,539
Amortization of internally developed software	936			—			936
Amortization of book-of-business consideration	1,649			(1,649		)	—
Amortization of intangible assets	1,040			—			1,040
Stock-based compensation expense	7,266			—			7,266
Deferred income taxes	114			4,538			4,652
Other non-cash items	(233		)	90			(143		)
Changes in operating assets and liabilities:
Accounts receivable	434			1,129			1,563
Commissions receivable	—			(8,032		)	(8,032		)
Prepaid expenses and other assets	(486		)	—			(486		)
Accounts payable	2,227			—			2,227
Accrued compensation and benefits	(3,466		)	—			(3,466		)
Accrued marketing expenses	(3,540		)	(366		)	(3,906		)
Deferred revenue	567			20			587
Accrued restructuring charges	(433		)	—			(433		)
Other current liabilities	(649		)	(916		)	(1,565		)
Net cash provided by operating activities	$	4,083		$	—		$	4,083



2017 Cash Flow Impact - Operating Activities
	Year Ended December 31, 2017
	As Reported			ASC 606 Adoption Adjustment			As Adjusted
Operating activities
Net income (loss)	$	(25,412	)	$	50,838		$	25,426
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	2,837			—			2,837
Amortization of internally developed software	1,464			—			1,464
Amortization of book-of-business consideration	1,167			(1,167		)	—
Amortization of intangible assets	1,040			—			1,040
Stock-based compensation expense	9,694			—			9,694
Deferred income taxes	(401		)	(29,940		)	(30,341		)
Other non-cash items	(101		)	—			(101		)
Changes in operating assets and liabilities:
Accounts receivable	(681		)	1,154			473
Commissions receivable	—			(21,640		)	(21,640		)
Prepaid expenses and other assets	(1,933		)	—			(1,933		)
Accounts payable	(1,866		)	—			(1,866		)
Accrued compensation and benefits	4,578			—			4,578
Accrued marketing expenses	(3,070		)	(295		)	(3,365		)
Deferred revenue	(574		)	108			(466		)
Accrued restructuring charges	—			—			—
Other current liabilities	(2,283		)	942			(1,341		)
Net cash used in operating activities	$	(15,541	)	$	—		$	(15,541	)

Summary of Business and Significant Accounting Policies (Narrative) (Details)
$ in Thousands

12 Months Ended

20 Months Ended

Dec. 31, 2017

USD ($)

segment

state

Dec. 31, 2016

USD ($)

segment

Dec. 31, 2015

USD ($)

Jun. 30, 2012

USD ($)

Finite-lived Intangible Assets Acquired

$ 13,900

Advertising Expense

$ 56,000

$ 64,800

$ 66,500

Research and Development Expense

7,600

8,900

10,600

Capitalized Computer Software, Additions

^[1]

$ (3,210)

$ (1,837)

(1,117)

Number of states in which the Company is licensed to market and sell health insurance | state

Number of operating segments | segment

Prior period reclassification adjustment

$ 800

600

Defined Contribution Plan Disclosure [Line Items]

^[1]

$ 1,464

936

627

Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent

25.00%

Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay

1.00%

Defined Contribution Plan, Matching Contributions Vesting Period

3 years

Defined Contribution Plan, Employer Discretionary Contribution Amount

$ 400

300

Book-of-Business, Margin Earned

$ 900

$ 1,000

$ 1,200

[1]	As adjusted for the adoption of ASC 606 using the full retrospective method

Summary of Business and Significant Accounting Policies (Goodwill) (Details) - USD ($)
$ in Thousands

Dec. 31, 2017

Dec. 31, 2016

Goodwill [Line Items]

Individual, Family and Small Business Segment

^[1]

$ 14,096

Goodwill [Line Items]

10,400

Medicare Segment

Goodwill [Line Items]

$ 3,700

[1]	As adjusted for the adoption of ASC 606 using the full retrospective method

Summary of Business and Significant Accounting Policies (Disaggregation of Revenue) (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2016

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

^[1]

$ 176,883

$ 177,234

$ 184,933

^[1]

13,823

16,090

18,414

$ 83,118

$ 31,466

$ 34,566

$ 41,556

$ 77,415

$ 28,642

$ 35,856

$ 51,411

190,706

^[1]

193,324

^[1]

203,347

^[1]

Medicare

Medicare | Medicare Advantage

$ 134,087

$ 116,097

$ 91,521

7.00%

Medicare | Medicare Supplement

$ 107,567

$ 95,736

$ 75,479

5.00%

Medicare | Medicare Part D

$ 15,435

$ 11,561

$ 9,271

5.00%

$ 11,085

$ 8,800

$ 6,771

Individual and Family

$ 17,079

$ 33,217

$ 59,420

Ancillary

10.00%

$ 16,048

$ 18,446

$ 23,391

Small Business

0.00%

$ 7,501

$ 6,133

$ 5,788

Commission Bonus

Non-Qualified Health Plans | Individual and Family

$ 2,168

$ 3,341

$ 4,813

15.00%

Qualified Health Plans | Individual and Family

$ 10,024

$ 18,852

$ 40,630

20.00%

$ 7,055

$ 14,365

$ 18,790

Short-term | Ancillary

5,504

7,276

7,788

Dental | Ancillary

5,064

6,968

10,702

Vision | Ancillary

1,607

2,013

2,575

Other | Ancillary

$ 3,873

$ 2,189

$ 2,326

[1]	As adjusted for the adoption of ASC 606 using the full retrospective method

Balance Sheet Accounts (Narrative) (Details)
$ in Thousands

12 Months Ended

Dec. 31, 2017

USD ($)

customer

Dec. 31, 2016

USD ($)

customer

Dec. 31, 2015

USD ($)

Amortization of acquired intangible assets

Depreciation

^[1]

$ 2,837

$ 3,539

$ 4,148

^[1],[2]

1,040

$ 1,153

Accounts Receivable | Customer Concentration Risk

^[3]

$ 1,475

$ 1,948

Number of significant customers | customer

Accounts Receivable | Customer Concentration Risk | Customer One

61.00%

67.00%

Accounts Receivable | Customer Concentration Risk | Customer Two

25.00%

23.00%

Accounts Receivable | Customer Concentration Risk | Customer Three

22.00%

17.00%

Accounts Receivable | Customer Concentration Risk | Customer Four

14.00%

15.00%

Medicare | Commissions Receivable | Segment Concentration Risk

12.00%

71.00%

81.00%

[1]	As adjusted for the adoption of ASC 606 using the full retrospective method
[2]	As adjusted for the adoption of ASC 606 using the full retrospective method
[3]	As adjusted for the adoption of ASC 606 using the full retrospective method

Balance Sheet Accounts (Schedule of Cash and Cash Equivalents) (Details) - USD ($)
$ in Thousands

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Total cash and cash equivalents

Cash

$ 5,098

$ 4,066

Money market funds

35,195

57,715

^[2]

$ 40,293

^[1]

$ 61,781

^[1]

$ 62,710

$ 51,415

[1]	As adjusted for the adoption of ASC 606 using the full retrospective method
[2]	As adjusted for the adoption of ASC 606 using the full retrospective method

Balance Sheet Accounts (Schedule of Prepaid Expenses and Other Current Assets) (Details) - USD ($)
$ in Thousands

Dec. 31, 2017

Dec. 31, 2016

Prepaid maintenance contracts (current)

$ 1,944

$ 2,026

Prepaid insurance

490

541

Prepaid rent

311

370

Other assets (current)

1,560

1,140

^[1]

$ 4,305

$ 4,077

[1]	As adjusted for the adoption of ASC 606 using the full retrospective method

Balance Sheet Accounts (Schedule of Property and Equipment) (Details) - USD ($)
$ in Thousands

Dec. 31, 2017

Dec. 31, 2016

Computer equipment and software

$ 17,112

$ 17,524

Office equipment and furniture

3,583

3,490

Leasehold improvements

3,156

3,173

Property and equipment, gross

23,851

24,187

Less accumulated depreciation and amortization

(19,146)

(18,579)

^[1]

$ 4,705

$ 5,608

[1]	As adjusted for the adoption of ASC 606 using the full retrospective method

Balance Sheet Accounts (Schedule of Other Assets) (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Balance Sheet Related Disclosures [Abstract]
Capitalized project costs	$ 4,481	$ 2,735
Security deposits	545	589
Deferred tax assets	232	204
Other	2,029	279
Other assets	$ 7,287	$ 3,807

Balance Sheet Accounts (Schedule of Intangible Assets) (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

$ 12,707

(10,281)

(9,241)

Indefinite-lived trademarks and domain names

2,426

3,466

5,114

Intangible assets

^[1]

7,540

8,580

Technology

1,700

(1,700)

Weighted Average Remaining Life

$ 0

0 years

Pharmacy And Customer Relationships

$ 10,100

10,100

(7,884)

(6,934)

Weighted Average Remaining Life

$ 2,216

3,166

2 years 4 months

Trade Names, Trademarks and Website Addresses

$ 907

907

(697)

(607)

Weighted Average Remaining Life

$ 210

$ 300

2 years 4 months

[1]	As adjusted for the adoption of ASC 606 using the full retrospective method

Balance Sheet Accounts (Schedule of Intangible Asset Future Amortization Expense) (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
2018	$ 1,040
2019	1,040
2020	346
Total finite-lived intangible assets, net	2,426	$ 3,466
Pharmacy And Customer Relationships
Finite-Lived Intangible Assets [Line Items]
2018	950
2019	950
2020	316
Total finite-lived intangible assets, net	2,216	3,166
Trade Names, Trademarks and Website Addresses
Finite-Lived Intangible Assets [Line Items]
2018	90
2019	90
2020	30
Total finite-lived intangible assets, net	$ 210	$ 300

Balance Sheet Accounts (Schedule of Other Current Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Balance Sheet Related Disclosures [Abstract]
Deferred revenue	$ 385	$ 851
Professional fees	1,012	307
Other accrued expenses	611	490
Total other current liabilities	$ 2,008	$ 1,648

Balance Sheet Accounts (Schedule of Non-Current Liabilities) (Details) - USD ($)
$ in Thousands

Dec. 31, 2017

Dec. 31, 2016

Deferred rent – non-current

$ 724

$ 830

Accrued affiliate commissions

1,092

1,322

Income tax payable – non-current

1,978

Total non-current liabilities

123

^[1]

$ 1,920

$ 4,253

[1]	As adjusted for the adoption of ASC 606 using the full retrospective method

Fair Value Measurements (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	$ 35,195	$ 57,715
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	35,195	57,715
Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	$ 35,195	$ 57,715

- Definition

Fair value portion of investment securities, including, but not limited to, marketable securities, derivative financial instruments, and investments accounted for under the equity method.

+ References + Details

Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended		45 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Jun. 12, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized	110,000,000		110,000,000
Preferred stock, par value per share (in dollars per share)	$ 0.001	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000	10,000,000
Preferred stock, shares outstanding	0	0	0
Shares available for grant	1,409,000		1,409,000	4,500,000
Number of shares repurchased under share repurchase plan			10,663,888
Treasury shares that were previously surrendered by employees to satisfy tax withholdings			574,107
Treasury Stock, Shares	11,237,995	11,135,590	11,237,995
Incremental stock-based compensation expense		$ 0.5
Common stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period for awards	7 years
Unrecognized stock-based compensation, options	$ 3.4		$ 3.4
Recognition period for unrecognized stock-based compensation expense	2 years 6 months 22 days
Common stock options \| Period One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting term for awards	4 years
Vesting percent	25.00%
Common stock options \| Period Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting term for awards	1 year
Vesting percent	2.08%
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation, restricted stock units	$ 17.8		$ 17.8
Recognition period for unrecognized stock-based compensation expense	2 years 8 months 1 day
Restricted stock units \| Period One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting term for awards	4 years
Vesting percent	25.00%
Restricted stock units \| Period Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting term for awards	1 year
Vesting percent	25.00%

Stockholders' Equity (Schedule of Shares Reserved) (Details) - shares	Dec. 31, 2017	Jun. 12, 2014
Stockholders' Equity Note [Abstract]
Stock options issued and outstanding	983,000
Restricted stock units issued and outstanding	1,745,000
Shares available for grant	1,409,000	4,500,000
Total shares reserved	4,137,000

Stockholders' Equity (Schedule of Stock Plan Activity) (Details) shares in Thousands	12 Months Ended
	Dec. 31, 2017 shares
Share-based Compensation Arrangement by Share-based Payment Award, Movement in Shares Available for Grant [Roll Forward]
Shares available for grant	1,409
2014 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award, Movement in Shares Available for Grant [Roll Forward]
Shares available for grant	2,267
Restricted stock units granted	(860)
Options granted	(330)
Restricted stock units cancelled	318
Options cancelled	14
Shares available for grant	1,409

Stockholders' Equity (Schedule of Option Activity Under Stock Plans) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Number of Stock Options
Stock options issued and outstanding	983
Common stock options
Number of Stock Options
Stock options issued and outstanding	975
Granted	330
Exercised	(69)
Cancelled	(253)
Stock options issued and outstanding	983	975
Options vested and expected to vest	931
Options exercisable	405
Weighted Average Exercise Price
Weighted-average exercise price, balance outstanding	$ 18.14
Granted	16.95
Exercised	14.96
Cancelled	20.43
Weighted-average exercise price, balance outstanding	17.38	$ 18.14
Weighted-average exercise price, vested and expected to vest	17.44
Weighted-average exercise price, exercisable	$ 20.34
Weighted-average remaining contractual life (years), balance outstanding	4 years 6 months 25 days	3 years 6 months 6 days
Weighted-average remaining contractual life (years), vested and expected to Vest	4 years 5 months 23 days
Weighted-average remaining contractual life (years), exercisable	2 years 6 months 23 days
Aggregate intrinsic value, balance outstanding	$ 2,522	$ 31
Aggregate intrinsic value, vested and expected to vest	2,401
Aggregate intrinsic value, exercisable	$ 857
Weighted average fair value of options granted	$ 9.03	$ 4.46	$ 5.67
Total fair value of options vested	$ 799	$ 1,243	$ 1,602
Intrinsic value of options exercised	$ 430	$ 4	$ 546

Stockholders' Equity (Schedule of Restricted Stock Unit Activity Under Stock Plans) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Number of Restricted Stock Units
Restricted Stock Units Issued And Outstanding	1,745
Restricted Stock Units
Number of Restricted Stock Units
Restricted Stock Units Issued And Outstanding	1,523
Granted	860
Vested	(318)
Cancelled	(320)
Restricted Stock Units Issued And Outstanding	1,745	1,523
Weighted-Average Grant Date Fair Value
Weighted-Average Grant Date Fair Value, Balance	$ 12.83
Granted	16.28
Vested	15.19
Cancelled	12.17
Weighted-Average Grant Date Fair Value, Balance	$ 14.24	$ 12.83
Weighted-Average Remaining Service Period	2 years 3 months 14 days	2 years 9 months 7 days
Aggregate Intrinsic Value	$ 30,313	$ 13,901

Stockholders' Equity (Schedule of Fair Value of Stock Options, Valuation Assumptions) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Common stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term	4 years 3 months 18 days	4 years 4 months 10 days	4 years 3 months 7 days
Expected volatility	69.80%	65.40%	64.10%
Expected dividend yield	0.00%	0.00%	0.00%
Risk-free interest rate	1.80%	1.10%	1.20%
Market-based options and restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term	1 year 7 months 13 days	2 years 1 month 13 days	2 years 7 months 2 days
Expected volatility	70.90%	67.90%	64.70%
Expected dividend yield	0.00%	0.00%	0.00%
Risk-free interest rate	1.70%	1.10%	1.10%
Weighted average grant date fair value	$ 9.42	$ 9.64	$ 6.69

Stockholders' Equity (Schedule of Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 9,694	$ 7,266	$ 7,002
Common stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	1,863	1,015	1,522
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	7,831	6,251	5,480
Marketing And Advertising
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	1,033	1,237	1,950
Customer Care And Enrollment
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	418	497	477
Technology And Content
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	1,410	1,836	1,728
General And Administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	6,833	3,696	2,734
Restructuring Charges
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 0	$ 0	$ 113

Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Tax Disclosure [Line Items]
Reversal of AMT credits	$ 1,800
Change in tax rate, deferred tax asset, provisional income tax expense	29,400
Tax credits	3,569	$ 4,399
Unrecognized tax benefits	3,096	5,253	$ 6,184	$ 6,756
Unrecognized tax benefits that would impact effective tax rate		$ 1,600
Federal Tax Authority
Income Tax Disclosure [Line Items]
Operating loss carry forwards	39,700
Tax credits	3,000
State Tax Jurisdiction
Income Tax Disclosure [Line Items]
Operating loss carry forwards	60,000
Tax credits	$ 4,200

Income Taxes (Schedule of Components of Pre-Tax Income) (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Income Tax Disclosure [Abstract]

United States

$ (9,242)

$ 3,087

$ 11,236

Foreign

972

885

435

Income (loss) before provision (benefit) for income taxes

^[1]

$ (8,270)

$ 3,972

$ 11,671

[1]	As adjusted for the adoption of ASC 606 using the full retrospective method

Income Taxes (Schedule of Current and Deferred Income Taxes) (Details) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Current:

Federal

$ (275)

$ (948)

$ (584)

State

(1,433)

(214)

(457)

Foreign

179

178

Total current

(1,529)

(984)

(944)

Deferred:

Federal

(28,161)

4,306

8,037

State

(3,992)

361

644

Foreign

(14)

(15)

(30)

Total deferred

(32,167)

4,652

8,651

Net weighted-average number of common stock shares outstanding

^[1]

$ (33,696)

$ 3,668

$ 7,707

[1]	As adjusted for the adoption of ASC 606 using the full retrospective method

Income Taxes (Income Tax Rate Reconciliation Schedule) (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Tax provision (benefit) at U.S. statutory rate	35.00%	35.00%	35.00%
State income taxes, net of federal benefit	31.70%	14.10%	10.50%
Non-qualified stock option shortfalls, net	1.90%	23.00%	15.20%
Stock-based compensation	(9.70%)	18.30%	11.00%
Lobbying	(9.10%)	8.90%	2.60%
Research and development credits	(1.50%)	(20.40%)	(9.70%)
Tax reform - tax rate change	355.90%	0.00%	0.00%
Foreign income tax and income inclusion	2.70%	10.90%	(0.00%)
Other	0.70%	2.40%	1.40%
Effective tax rate	407.60%	92.20%	66.00%

Income Taxes (Schedule of Deferred Tax Assets, Net) (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Deferred tax assets:
Accruals and reserves	$ 2,499	$ 2,242
Stock-based compensation	2,443	2,960
Intangible assets	448	1,464
Net operating losses	12,055	9,337
Tax credits	3,569	4,399
Other	178	70
Total deferred tax assets	21,192	20,472
Deferred Tax Liabilities, Net [Abstract]
Commissions receivable	(64,911)	(93,538)
Intangible assets	1,083	2,133
Fixed assets	(55)	0
Total deferred tax liabilities	66,049	95,671
Net deferred tax liabilities	$ (44,857)	$ (75,199)

Income Taxes (Reconciliation of Unrecognized Tax Benefits Schedule) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits, beginning balance	$ 5,253	$ 6,184	$ 6,756
Increases based on tax positions related to the prior year			344
Decreases based on tax positions related to the prior year			(24)
Decreases based on tax positions related to the prior year	(862)
Lapse of statute of limitations	(1,637)	(1,236)	(1,301)
Additions based on tax positions related to the current year	342	305	409
Unrecognized tax benefits, ending balance	$ 3,096	$ 5,253	$ 6,184

Net Loss Per Share (Schedule of Computation of Basic and Diluted Net Income Per Share) (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2016

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Earnings Per Share [Abstract]

Net loss

$ 28,028

$ (2,176)

$ (1,506)

$ 1,080

$ (3,844)

$ 3,448

$ 1,495

$ (795)

$ 25,426

^[1],[2],[3]

$ 304

^[1],[2],[3]

$ 3,964

^[1],[2],[3]

^[1]

18,512

18,272

18,008

Weighted average number of options

$ 1.50

$ (0.12)

$ (0.08)

$ 0.06

$ (0.21)

$ 0.19

$ 0.08

$ (0.04)

$ 1.37

^[1]

$ 0.02

^[1]

$ 0.22

^[1]

535

Total common stock shares used in per share calculation

^[1]

19,047

18,314

18,086

$ 1.47

$ (0.12)

$ (0.08)

$ 0.06

$ (0.21)

$ 0.19

$ 0.08

$ (0.04)

$ 1.33

^[1]

$ 0.02

^[1]

$ 0.22

^[1]

[1]	As adjusted for the adoption of ASC 606 using the full retrospective method
[2]	As adjusted for the adoption of ASC 606 using the full retrospective method
[3]	As adjusted for the adoption of ASC 606 using the full retrospective method

Net Loss Per Share (Schedule of Anti-Dilutive Shares Excluded from Computation Of Net Income Per Share) (Details) - shares shares in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	2,204	1,990	2,350
Common stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	908	1,222	1,484
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total	1,296	768	866

Commitments and Contingencies (Narrative) (Details) - Breach of Contract - Maximum	1 Months Ended
	Jul. 31, 2017 USD ($)
Loss Contingencies [Line Items]
Litigation settlement, amount awarded	$ 250,000
Litigation settlement, amount awarded, per individual	$ 2,500
Litigation settlement, amount awarded, period of extended protection (in years)	1 year
Litigation settlement, amount awarded, period of protection	3 years
Litigation settlement, expense	$ 245,000

Commitments and Contingencies (Operating lease) (Details) $ in Thousands		1 Months Ended			12 Months Ended
	Aug. 31, 2017 ft²	Aug. 31, 2014 ft²	Jul. 31, 2013 ft²	Mar. 31, 2012	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($) ft²	Dec. 31, 2015 USD ($) ft²
Commitments And Contingencies Disclosure [Line Items]
Future minimum payments related to operating lease					$ 16,405
Office space, square feet vacated \| ft²							11,200
Office space, square feet reoccupied \| ft²						5,400
Operating lease expense					4,600	$ 4,500	$ 5,400
Mountain View, California lease agreement
Commitments And Contingencies Disclosure [Line Items]
Operating lease, term				10 years
Operating lease, percentage of annual base rent increase				3.00%
Future minimum payments related to operating lease					4,200
Westford, Massachusetts Lease Agreement
Commitments And Contingencies Disclosure [Line Items]
Operating lease, term			5 years 3 months
Future minimum payments related to operating lease					400
Office space, square feet \| ft²			20,000
Gold River, California Lease Agreement
Commitments And Contingencies Disclosure [Line Items]
Operating lease, term		4 years 5 months
Future minimum payments related to operating lease					3,400
Office space, square feet \| ft²		50,000
South Jordan, Utah
Commitments And Contingencies Disclosure [Line Items]
Operating lease, term	5 years 3 months
Future minimum payments related to operating lease					$ 3,400
Office space, square feet \| ft²	28,000

Commitments and Contingencies (Schedule of Future Minimum Obligations) (Details) $ in Thousands	Dec. 31, 2017 USD ($)
Commitments And Contingencies Disclosure [Line Items]
2018	$ 5,615
2019	3,857
2020	3,324
2021	1,457
2022	1,501
Thereafter	651
Total	16,405
Operating Lease Obligations
Commitments And Contingencies Disclosure [Line Items]
2018	3,617
2019	2,996
2020	2,994
2021	1,457
2022	1,501
Thereafter	651
Total	13,216
Service And Licensing Obligations
Commitments And Contingencies Disclosure [Line Items]
2018	1,998
2019	861
2020	330
2021	0
2022	0
Thereafter	0
Total	$ 3,189

Operating Segments, Geographic Information and Significant Customers (Details) - USD ($)
$ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2016

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

$ 83,118

$ 31,466

$ 34,566

$ 41,556

$ 77,415

$ 28,642

$ 35,856

$ 51,411

$ 190,706

^[1]

$ 193,324

^[1]

$ 203,347

^[1]

(9,694)

(7,266)

(6,889)

^[2]

(2,837)

(3,539)

(4,148)

Restructuring benefit

^[1]

297

(4,541)

(621)

^[1],[2]

(1,040)

(1,153)

Income (loss) before provision (benefit) for income taxes

^[1]

1,182

1,149

1,285

^[1]

(8,270)

3,972

11,671

Operating Segments

190,706

193,324

203,347

Operating Segments | Medicare Segment

31,710

43,444

52,252

142,448

122,156

98,038

Operating Segments | Individual, Family and Small Business Segment

22,137

10,394

13,598

48,258

71,168

105,309

9,573

33,050

38,654

Corporate, Non-Segment

Selected Quarterly Financial Information [Abstract]

$ (26,970)

$ (29,073)

$ (25,135)

[1]	As adjusted for the adoption of ASC 606 using the full retrospective method
[2]	As adjusted for the adoption of ASC 606 using the full retrospective method

Operating Segments, Geographic Information and Significant Customers (Schedule Of Long-Lived Assets By Geographical Area) (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Total	$ 33,426	$ 32,553
United States
Segment Reporting Information [Line Items]
Total	32,876	32,162
China
Segment Reporting Information [Line Items]
Total	$ 550	$ 391

Operating Segments, Geographic Information and Significant Customers (Schedule of Revenue by Major Customers) (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Humana
Revenue, Major Customer [Line Items]
Major customer revenue, percentage	20.00%	22.00%	23.00%
UnitedHealthcare
Revenue, Major Customer [Line Items]
Major customer revenue, percentage	23.00%	19.00%	12.00%
Aetna
Revenue, Major Customer [Line Items]
Major customer revenue, percentage	10.00%	11.00%	11.00%

Selected Quarterly Financial Data (Unaudited) (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2016

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2017

^[1]

Dec. 31, 2016

^[1]

Dec. 31, 2015

^[1]

$ 83,118

$ 31,466

$ 34,566

$ 41,556

$ 77,415

$ 28,642

$ 35,856

$ 51,411

$ 190,706

$ 193,324

$ 203,347

20,802

(15,673)

(10,468)

(4,113)

16,741

(10,078)

(6,989)

3,149

(9,452)

2,823

10,386

Diluted (in usd per share)

$ 28,028

$ (2,176)

$ (1,506)

$ 1,080

$ (3,844)

$ 3,448

$ 1,495

$ (795)

$ 25,426

^[2],[3]

$ 304

^[2],[3]

$ 3,964

^[2],[3]

Basic (in usd per share)

$ 1.50

$ (0.12)

$ (0.08)

$ 0.06

$ (0.21)

$ 0.19

$ 0.08

$ (0.04)

$ 1.37

$ 0.02

$ 0.22

$ 1.47

$ (0.12)

$ (0.08)

$ 0.06

$ (0.21)

$ 0.19

$ 0.08

$ (0.04)

$ 1.33

$ 0.02

$ 0.22

[1]	As adjusted for the adoption of ASC 606 using the full retrospective method
[2]	As adjusted for the adoption of ASC 606 using the full retrospective method
[3]	As adjusted for the adoption of ASC 606 using the full retrospective method

Adoption Impact of New Revenue Standard (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

12 Months Ended

Dec. 31, 2017

Sep. 30, 2017

Jun. 30, 2017

Mar. 31, 2017

Dec. 31, 2016

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2017

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

^[2]

$ 40,293

^[1]

$ 61,781

^[1]

$ 40,293

^[1]

$ 61,781

^[1]

$ 62,710

$ 51,415

^[1]

1,475

1,948

1,475

1,948

^[1]

109,666

104,726

109,666

104,726

^[1]

4,305

4,077

4,305

4,077

^[1]

155,739

172,532

155,739

172,532

^[1]

169,751

153,051

169,751

153,051

^[1]

4,705

5,608

4,705

5,608

^[1]

7,287

3,807

7,287

3,807

^[1]

7,540

8,580

7,540

8,580

^[1]

14,096

^[1]

359,118

357,674

359,118

357,674

^[1]

3,246

5,112

3,246

5,112

^[1]

15,498

10,920

15,498

10,920

^[1]

4,693

8,058

4,693

8,058

^[1]

2,008

1,648

2,008

1,648

^[1]

25,445

25,738

25,445

25,738

^[1]

45,089

75,403

45,089

75,403

^[1]

1,920

4,253

1,920

4,253

Stockholders' equity:

Common stock

^[1]

^[1]

281,706

272,778

281,706

272,778

Treasury stock, at cost

^[1]

(199,998)

^[1]

204,724

179,298

204,724

179,298

^[1]

202

173

202

173

^[3]

286,664

^[1]

252,280

^[1]

286,664

^[1]

252,280

^[1]

236,178

$ 224,504

^[1]

359,118

357,674

359,118

357,674

Revenue:

^[4]

176,883

177,234

184,933

^[4]

13,823

16,090

18,414

83,118

$ 31,466

$ 34,566

$ 41,556

77,415

$ 28,642

$ 35,856

$ 51,411

190,706

^[4]

193,324

^[4]

203,347

^[4]

^[4]

582

862

1,947

^[4]

65,874

72,213

75,571

^[4]

59,183

48,718

43,159

^[4]

32,889

32,749

36,351

^[4]

39,969

35,216

30,239

Restructuring Charges

^[4]

297

(4,541)

^[4]

621

^[2],[4]

(1,040)

(1,153)

^[4]

200,158

190,501

192,961

20,802

(15,673)

(10,468)

(4,113)

16,741

(10,078)

(6,989)

3,149

(9,452)

^[4]

2,823

^[4]

10,386

^[4]

Income (loss) before provision (benefit) for income taxes

^[4]

1,182

1,149

1,285

^[4]

(8,270)

3,972

11,671

^[4]

(33,696)

3,668

7,707

$ 28,028

$ (2,176)

$ (1,506)

$ 1,080

$ (3,844)

$ 3,448

$ 1,495

$ (795)

$ 25,426

^[2],[3],[4]

$ 304

^[2],[3],[4]

$ 3,964

^[2],[3],[4]

$ 1.50

$ (0.12)

$ (0.08)

$ 0.06

$ (0.21)

$ 0.19

$ 0.08

$ (0.04)

$ 1.37

^[4]

$ 0.02

^[4]

$ 0.22

^[4]

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]

$ 1.47

$ (0.12)

$ (0.08)

$ 0.06

$ (0.21)

$ 0.19

$ 0.08

$ (0.04)

$ 1.33

^[4]

$ 0.02

^[4]

$ 0.22

^[4]

$ (9,694)

$ (7,266)

$ (6,889)

^[2]

(2,837)

(3,539)

(4,148)

(621)

Amortization of book-of-business consideration

^[2]

1,464

936

627

^[2]

9,694

7,266

7,002

^[2]

(30,341)

4,652

8,651

^[2]

(101)

(143)

106

^[2]

473

1,563

(1,050)

^[2]

(21,640)

(8,032)

(15,050)

^[2]

(1,933)

(486)

997

^[2]

(1,866)

2,227

(2,949)

^[2]

4,578

(3,466)

6,180

^[2]

(3,365)

(3,906)

1,865

^[2]

(466)

587

(770)

Accrued expense and other liabilities

^[2]

(433)

433

^[2]

(1,341)

(1,565)

(1,611)

Net cash provided by (used in) operating activities

^[2]

(15,541)

4,083

13,696

Calculated under Revenue Guidance in Effect before Topic 606 | Accounting Standards Update 2014-09

$ 40,293

$ 61,781

40,293

61,781

9,894

9,213

9,894

9,213

4,845

5,148

4,845

5,148

55,032

76,142

55,032

76,142

4,705

5,608

4,705

5,608

7,317

4,473

7,317

4,473

7,540

8,580

7,540

8,580

14,096

88,690

108,899

88,690

108,899

3,246

5,112

3,246

5,112

15,498

10,920

15,498

10,920

4,088

7,158

4,088

7,158

3,815

4,734

3,815

4,734

26,647

27,924

26,647

27,924

900

3,374

900

3,374

Stockholders' equity:

Common stock

281,706

272,778

281,706

272,778

Treasury stock, at cost

(199,998)

(20,796)

4,616

(20,796)

4,616

201

176

201

176

61,143

77,601

61,143

77,601

88,690

108,899

88,690

108,899

Revenue:

158,424

170,850

171,257

13,931

16,110

18,284

172,355

186,960

189,541

2,273

3,176

4,178

65,874

72,213

75,571

59,183

48,718

43,159

32,889

32,749

36,351

39,969

35,216

30,239

Restructuring Charges

297

(4,541)

621

(1,040)

(1,153)

201,849

192,815

195,192

(29,494)

(5,855)

(5,651)

Income (loss) before provision (benefit) for income taxes

327

102

(29,167)

(5,753)

(5,606)

(3,755)

(871)

(843)

$ (25,412)

$ (4,882)

$ (4,763)

$ (1.37)

$ (0.27)

$ (0.26)

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]

$ (1.37)

$ (0.27)

$ (0.26)

$ (9,694)

$ (7,266)

$ (6,889)

(2,837)

(3,539)

(4,148)

(621)

Amortization of book-of-business consideration

1,464

936

627

1,167

1,649

2,006

9,694

7,266

7,002

(401)

114

101

(101)

(233)

106

(681)

434

(1,447)

(1,933)

(486)

997

(1,866)

2,227

(2,949)

4,578

(3,466)

6,180

(3,070)

(3,540)

1,991

(574)

567

(642)

(433)

433

Net cash provided by (used in) operating activities

(2,283)

(649)

(1,247)

(15,541)

4,083

13,696

Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09

(8,419)

(7,265)

(8,419)

(7,265)

109,666

104,726

109,666

104,726

(540)

(1,071)

(540)

(1,071)

100,707

96,390

100,707

96,390

169,751

153,051

169,751

153,051

(30)

(666)

(30)

(666)

270,428

248,775

270,428

248,775

605

900

605

900

(1,807)

(3,086)

(1,807)

(3,086)

(1,202)

(2,186)

(1,202)

(2,186)

45,089

75,403

45,089

75,403

1,020

879

1,020

879

Stockholders' equity:

Common stock

Treasury stock, at cost

225,520

174,682

225,520

174,682

(3)

225,521

174,679

225,521

174,679

$ 270,428

248,775

270,428

248,775

Revenue:

18,459

6,384

13,676

(108)

(20)

130

18,351

6,364

13,806

(1,691)

(2,314)

(2,231)

Restructuring Charges

(1,691)

(2,314)

(2,231)

20,042

8,678

16,037

Income (loss) before provision (benefit) for income taxes

855

1,047

1,240

20,897

9,725

17,277

(29,941)

4,539

8,550

$ 50,838

$ 5,186

$ 8,727

$ 2.74

$ 0.29

$ 0.48

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]

$ 2.70

$ 0.29

$ 0.48

$ 0

Amortization of book-of-business consideration

(1,167)

(1,649)

(2,006)

(29,940)

4,538

8,550

1,154

1,129

397

(21,640)

(8,032)

(15,050)

(295)

(366)

(126)

108

(128)

Net cash provided by (used in) operating activities

942

(916)

(364)

Operating Segments

Revenue:

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]

190,706

193,324

203,347

Operating Segments | Calculated under Revenue Guidance in Effect before Topic 606 | Accounting Standards Update 2014-09

31,710

43,444

52,252

Revenue:

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]

172,355

186,960

189,541

Operating Segments | Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09

11,667

34,764

36,215

Revenue:

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]

18,351

6,364

13,806

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]

20,043

8,680

16,037

Corporate, Non-Segment

Corporate, Non-Segment | Calculated under Revenue Guidance in Effect before Topic 606 | Accounting Standards Update 2014-09

(26,970)

(29,073)

(25,135)

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]

Corporate, Non-Segment | Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09

(26,969)

(29,071)

(25,135)

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]

(1)

(2)

Medicare Segment

Medicare Segment | Operating Segments

3,700

Revenue:

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]

142,448

122,156

98,038

Medicare Segment | Operating Segments | Calculated under Revenue Guidance in Effect before Topic 606 | Accounting Standards Update 2014-09

22,137

10,394

13,598

Revenue:

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]

102,584

80,269

63,163

Medicare Segment | Operating Segments | Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09

(18,760)

(33,141)

(23,284)

Revenue:

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]

39,864

41,887

34,875

Individual, Family, And Small Business Segments

40,897

43,535

36,882

Individual, Family, And Small Business Segments | Operating Segments

$ 10,400

10,400

Revenue:

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]

48,258

71,168

105,309

Individual, Family, And Small Business Segments | Operating Segments | Calculated under Revenue Guidance in Effect before Topic 606 | Accounting Standards Update 2014-09

9,573

33,050

38,654

Revenue:

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]

69,771

106,691

126,378

Individual, Family, And Small Business Segments | Operating Segments | Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09

30,427

67,905

59,499

Revenue:

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract]

(21,513)

(35,523)

(21,069)