Truce
Expert
- 81
One carrier's data in my market says avg ACA plan stays on the books 9 months. I think that was from 2021. On the surface that makes an ACA book look worthless, but the business owners (longer term coverage needs/potential group/employee plans) and early retirees (medicare transition) are worth paying 2 or 3x annual revenue for.
Assuming $20 PMPM ( I don't know the AZ market) generated $55K revenue, let's say that's 250 members, maybe 150 households. If a seller was willing to work with me to look under the hood and see how many households fit that criteria, it could be worth more than 6 months. 2x might be a stretch
I think the bigger issue with ACA books is how local the buyers need to be to service it well and get value from it. Outside of my immediate area, an ACA book is worth exactly ZERO to me. In my area, I might be a top bidder.
Assuming $20 PMPM ( I don't know the AZ market) generated $55K revenue, let's say that's 250 members, maybe 150 households. If a seller was willing to work with me to look under the hood and see how many households fit that criteria, it could be worth more than 6 months. 2x might be a stretch
I think the bigger issue with ACA books is how local the buyers need to be to service it well and get value from it. Outside of my immediate area, an ACA book is worth exactly ZERO to me. In my area, I might be a top bidder.