improve health care quality beginning in 2011. The implementation of the medical loss ratio requirements by insurance carriers has resulted in a reduction in the commission rates that we are paid as a result of our selling individual and family health insurance plans. These reductions will begin to impact our individual and family health insurance plan commission-based revenue starting in 2011.
Marketing Partners. Our marketing partner member acquisition channel consists of consumers who access our websites through a network of affiliate partners and financial services and other companies. Growth in our marketing partner channel depends upon our expanding marketing programs with existing partners and adding new partners to our network. For the years ended December 31, 2008, 2009 and 2010, applications submitted through us for individual and family health insurance plans from our marketing partner member acquisition channel constituted approximately 33%, 32% and 29%, respectively, of all individual and family health insurance applications submitted on our website.
(3) New IFP members reported to eHealth as approved during the period. Some members that are approved by a carrier do not accept the approval and therefore do not become paying members. Does not include members transferred from Health Benefits Direct Corporation during 2009.
Our sponsorship advertising program allows carriers to purchase advertising space in specific markets in a sponsorship area on our website. In return, we are typically paid a monthly fee, which is recognized over the period that advertising is displayed, and often a performance fee based on metrics such as submitted health insurance applications.
On November 12, 2008, we announced that our board of directors authorized a stock repurchase program, pursuant to which up to 2,507,950 shares could be repurchased, for a total cost not to exceed $30 million. This stock repurchase program was completed in September 2009 when a cumulative balance of approximately $30 million of common stock, including commissions, had been repurchased. On July 27, 2010, we announced that our board of directors approved a stock repurchase program authorizing us to purchase up to $30 million of our common stock. This stock repurchase program was completed in January 2011 when a cumulative balance of approximately $30 million of common stock, including commissions, had been repurchased. The cost of the repurchased shares was funded from available working capital for these stock repurchase programs. Share repurchases under these programs complied with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. All shares repurchased under the programs were returned to the status of authorized but unissued shares of common stock. For accounting purposes, common stock repurchased under the programs was recorded based upon the settlement date of the applicable trade. Such repurchased shares are held in treasury and are presented using the cost method.
We have audited the accompanying consolidated balance sheets of eHealth, Inc. as of December 31, 2010 and 2009, and the related consolidated statements of income and comprehensive income, stockholders’ equity, and cash flows for each of the three years in the period ended December 31, 2010. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
Revenue Recognition-We recognize revenue for our services when each of the following four criteria is met: persuasive evidence of an arrangement exists; delivery has occurred or services have been rendered; the seller’s price to the buyer is fixed or determinable; and collectibility is reasonably assured.
(1) Shares available for grant exclude treasury stock of 1,894,355 shares and 3,956,128 shares at December 31, 2009 and 2010, respectively, that could be granted if eHealth determined to do so.
The following table presents total unrecognized stock-based compensation expense as of December 31, 2010 related to stock options and restricted stock units granted to employees under our stock plans (in thousands):
The following table summarizes stock-based compensation expense recorded during the years ended December 31, 2008, 2009 and 2010 (in thousands):