Ehealthinsurance.com vs. MedSave.com

KM | May 8, 2008

Q: What is the difference between Ehealthinsurance.com and MedSave.com?

A: Both Ehealthinsurance.com and MedSave.com are among a handful of insurance enrollment Websites that serve all of the U.S. and international travelers. Ehealthinsurance.com is the largest, handling enrollments for about 125 health plans nationally. Their strength, we believe is in the technology that prices and handles enrollment directly on their Web site. The capital for this investment in technology was made possible through a public offering. The company's stock now trades on the NASDAQ market exchange as "EHTH".

MedSave.com is a smaller privately owned business that focuses specifically on low cost health insurance plans with personal enrollment support. MedSave.com currently handles enrollment support for about 25 health insurance plans. MedSave.com focuses on low cost health insurance plans where the average premium less than 50% of the national average health insurance.

Both companies were founded in 1997.  A key distinction between the two companies is that Ehealthinsurance.com has a large advertising budget to purchase Internet "click" traffic as well as advertisements in other media. In sharp contrast, MedSave.com relies almost entirely on word-of-mouth referrals from satisfied customers. Ehealthinsurance.com apparently now handles about 80 times more visitors than MedSave.com, but MedSave.com appears to be growing at a faster rate and closing the gap. Ehealthinsurance.com reports more than a million insurance policies issued on their own Web site, MedSave.com also reports having a million total users, but does not issue any policies directly on its own Web site. Both companies benefit from favorable customer comments, public opinion and media coverage.

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