If I look at competitive consolidation, you part of my answer, which is we’re always interested in attractive transactions that have high IRR for our shareholders. I think for all of the reasons we talked about, both at the beginning of the call and in the first answer about these deposits being very steady for the banks at the moment, I’m less sanguine even than I was a few months ago, that like, there’s going to be a material transaction that’s going to develop in that area. I just that is how it is and I think that’s totally fine. There’s no reason for us to run around pricing those transactions into the market or the like, and it’s a reflection of the quality and steadiness of the underlying business. So, that being said, we do have to — we then are looking at and should be looking at like what’s the purpose of maintaining that the outstanding TLA and its current size when we obviously have the capacity should we need it for pretty much anything that we would contemplate and we are looking at that.
So I probably did just give you more than they told me to give you, but that’s the full answer.
Operator: The next question is from George Hill with Deutsche Bank. Please go ahead.
George Hill: Good afternoon guys, and I’ll say, now I’m bummed out because Sandy took my cash flow question. So I guess what I’ll roll into is maybe talk a little bit about expectations for the CDB business in ’24. Is that something that we think shrinks again next year? Or is it poised for stability in a rebound and I’ll have a quick follow up.
Jon Kessler: Yeah. You can’t just claim credit for Sandy’s question that doesn’t, that doesn’t fly with us.
George Hill: But Jon, I had a four part cash flow question here written out in my notes, and he basically asked for the part of it,
Jon Kessler: So, look on CDB, as you as folks will recall, I was hopeful that we could put, a black single digit on the boards coming into ’24. We didn’t quite get there because Cobra remains weak. And that’s probably the biggest problem. And we are going to have to really look at it and understand a little better or understand as well as we can what our levers are. I think, what is fair to say is that our guidance with regard to revenue generation in the current year reflects a level of conservatism on this topic. But that it is pretty clear that we know what to — but that having been said, that sales are, have actually been pretty good. Our challenge, George has been the platform movement and all of that. And if I could be convinced as well as the regulatory issues that kind of brought us up and then brought us down around the national emergency, and if I could be, if I weren’t convinced that all that were behind us and that we that’s not just we, but employers had fully digested the implications of all of that, I’d probably feel more confident in giving you a view that I’m not just hopeful, but comfortable that from a sales perspective, we will be able to put up a black zero, a black number here.
It’ll still be a single digit number, but a black number. I’m just not as convinced of that. Do we know, obviously if employment slots off, will that be somewhat good for Cobra? Yes. Right. Has anyone figured out what Congress is going to do with the existing effectively competing subsidies in the ACA marketplace? No. Right. Does, does everyone fully figured out the national emergency end, that’s going to happen in a few months? I think we know what the implication is for our business immediately and we forecasted it, but I, I’m not sure everyone’s fully digested it. So, I guess my answer is it unfortunately, I feel like we’re still in a mode where I can’t beat my chest about this thing yet.
