The Journal reports that having a Web-based system "pays off" in "efficiency and customer retention." Ten percent of insurance applications filed on the site "have to be reworked or rewritten to satisfy" insurers and regulators, compared to an industry average of 30% to 40%. The company has also succeeded in "simplify[ing]" the application process, making it "far easier for individuals and small businesses to compare a variety of health plans and to choose the one that suits them best, both in terms of coverage and cost." The Journal reports that eHealthInsurance's business model is "lucrative." The company receives 10% to 15% of its customers' monthly premiums, creating "gross margins in excess of 80%," according to CEO Gary Lauer. The Journal reports that in January, the firm "close[d] a new round of financing," receiving $32 million from WellPoint and the investment firm QuestMark Partners (Hamilton, Wall Street Journal, 4/5).