Health insurance brokerage company eHealth could be delisted from the Nasdaq stock exchange after the company’s shares closed below the $1 minimum bid price for 30 consecutive business days.
In an Oct. 16 SEC filing, eHealth said it has until April 12, 2027, to regain compliance, which requires its shares to close at or above $1 for at least 10 consecutive business days. If it misses that deadline, the company could seek an additional 180 days by transferring to the Nasdaq Capital Market, if eligible.
The company said it will consider all available options, which may include asking stockholders to approve a reverse stock split. In the meantime, there is no immediate effect on the listing of its stock, which continues to trade on the Nasdaq.
The possible delisting comes as eHealth shifts its operating model under CEO Derrick Duke, who took the role in September 2025 after leading Magellan Health. Second-quarter revenue fell 45% year over year to $33.6 million, which the company attributed to lower Medicare enrollment volume. Its net loss for the quarter was $23.6 million, compared to $17.4 million a year earlier.
eHealth is also a defendant in an ongoing Justice Department lawsuit that alleges Aetna, Elevance Health and Humana paid hundreds of millions of dollars in illegal kickbacks to brokers in exchange for Medicare Advantage enrollments from 2016 through at least 2021. In March, a judge denied a motion to dismiss the case, and eHealth has denied the allegations.
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