GoHealth shares sink after Chapter 11 filing, delisting but peers remain unfazed

As GoHealth Inc.'s stock price craters in the wake of its bankruptcy announcement, its healthcare-focused insurtech peers enjoyed a far less turbulent week on Wall Street.

The Chicago-based health insurance marketplace and Medicare-focused digital health company announced June 7 that it is seeking Chapter 11 reorganization. GoHealth plans to transition company ownership to some of its lenders during the restructuring process, which it aims to complete before the next annual enrollment period begins.

GoHealth's stock has tumbled 57.2% since Friday, June 5, and was at just 32 cents at close of trading on June 11. The company's stock and net revenue have declined sharply since it went public almost six years ago. GoHealth's bad week also included the news that it is set to be delisted from the Nasdaq for various reasons, including the requirement of a minimum market value of listed securities of $35 million.

In contrast, SelectQuote Inc., which acts as a broker for insurance policies and healthcare services, rose 4.3% during the same period. eHealth Inc., which operates a health insurance marketplace, rose 1.2%. Goosehead Insurance Inc., which operates as a broker largely for property & casualty lines, fell 3.8%. During the same period, the S&P 500 and S&P Insurance Index rose 0.14% and 0.54%, respectively.

GoHealth did not respond to a request for comment.

GoHealth's decline

GoHealth has been embattled pretty much since going public.

The company on July 14, 2020, announced its IPO of 43.5 million shares of its Class A common stock at a public offering price of $21 per share, equivalent to total gross proceeds of $913.5 million. Shares shot up to $266.25 at the close of its first trading day of July 31. By late-March 2022, however, the stock fell to below $20 and would never move above that mark again. GoHealth shares closed at 67 cents on the last day before the bankruptcy filing was announced.

After falling precipitously from 2021 to 2022, GoHealth's net revenue picture improved steadily over the next few years. But that reversed sharply in 2025 when revenues plunged to $361.8 million from $798.9 million a year earlier.

GoHealth scaled back Medicare Advantage activity in 2025 in response to tightening health plan economics, CEO Vijay Kotte said during a November earnings call. "The industry experienced similar pressures previously. We learned from those cycles, and we use those lessons this year to move early," Kotte said.

In a May 18, 2026, filing, the company noted both a changing market environment where insurers were "increasingly prioritizing profitability over membership growth," along with an increase in interest rates and outstanding borrowings.

Healthcare costs began outpacing government reimbursement rates for insurers around 2024, prompting many carriers to scale back their business with GoHealth.

GoHealth was put under further financial strain after the US Department of Justice in May 2025 named the company in a lawsuit that alleged insurers paid hundreds of millions of dollars in illegal kickbacks to brokers in exchange for enrollments into the insurers' Medicare Advantage plans. SelectQuote and eHealth were also named in the lawsuit, alongside managed care insurers Aetna Inc., Elevance Health Inc. and Humana Inc. The companies have previously denied wrongdoing.

Ratings lowered

Despite releasing first quarter 2026 earnings figures in April, the company has not held a public earnings call since November 2025 when third quarter 2025 earnings were discussed.

Following that November call, William Blair analyst Adam Klauber lowered the company's rating to "market perform," citing GoHealth's efforts to pull back in order to conserve cash in a challenging market.

"Third-quarter revenue and Medicare submissions were below our expectations as the company pulled back on new enrollment growth, aligning with insurer actions to prioritize profitability and member retention over broad member expansion," Klauber wrote.

The rating downgrade was due to market headwinds that would likely persist through 2026, uncertainty on GoHealth's ability to generate sustainable positive cash flow and limited progress in diversifying its business model, the analyst said.

After GoHealth announced its bankruptcy filing, William Blair and Klauber released their first note on the company since the prior year, saying: "We are dropping coverage of GoHealth as a result of a reallocation of resources."