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Costco Opens Sesame Telehealth Partnership

Analysis  |  By John Commins  
   September 25, 2023

The wholesale club's discount offering is designed for uninsured members and those with high-deductible plans.

Wholesaler Costco is partnering with primary care telehealth "superstore" Sesame to offer $29 virtual visits for uninsured club members and those with high-deductible plans, the two companies announced Monday.

The discounted virtual care provided by Sesame's primary care physicians and nurse practitioners will be available to Costco members across 50 states. The partnership will also offer in-person health check-ups with standard lab panels and virtual follow-up consultations for $72, and virtual mental health sessions for $79, and a 10% discount for in-person visits.

Sesame does not accept health insurance.

Describing itself as "America's only superstore for great doctors and specialists," New York City-based Sesame says it has created "a unique healthcare marketplace, connecting thousands of outpatient healthcare providers covering all 50 United States with American consumers seeking high quality, convenient medical care at half the price of what is typical."

"By bringing marketplace dynamics to consumer healthcare for the first time, Sesame has created an environment where providers actually compete to serve patients, regardless of the patient's insurance status," Sesame says. "The resulting competition lowers the price of care, drives complete price transparency, provides ready access to health providers, mostly within two hours."

The Sesame partnership is the latest foray into healthcare by Issaquah, WA-based Costco. In 2011, Costco partnered with Aetna to create a health insurance plan for its members. That partnership transition in 2022 to Custom Benefit Consultants and expanded to provide members and member businesses with a health insurance marketplace, often with discounted prices.

In 2021, Walmart, Inc. entered the telehealth space with the acquisition of MeMed, allowing the retail giant to offer tele-behavioral and primary care across the nation. Amazon also stepped up its telehealth game in February with its $3.9 billion acquisition of San Francisco-based One Medical. The deal gives Amazon access to One Medical's virtual care platform, and more than 200 brick-and-mortar care venues, which operate in about 26 markets, and includes over 800,000 members.

However, Costco and Sesame claim their partnership is unique because it "provides its members access to Sesame's marketplace of low-price healthcare services, virtually or in-person with a provider, all at an exclusive discount."

"With the option to bring healthcare into their home, Costco members will have access to care in a setting that's right for them and have the option to develop long-term doctor-patient relationships with a Sesame provider."

John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.


KEY TAKEAWAYS

The discounted virtual care provided by Sesame's primary care physicians and nurse practitioners will be available to Costco members across 50 states.

The partnership will also offer in-person health check-ups with standard lab panels and virtual follow-up consultations for $72, and virtual mental health sessions for $79.

Costco and Sesame claim their partnership is unique because it "provides its members access to Sesame's marketplace of low-price healthcare services, virtually or in-person with a provider, all at an exclusive discount."


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