The Blubber

Costco, $COST, members will be eligible for online primary care visits for $29 and mental health visits for $79.

The company, headquartered in New York, has clarified that its platform does not accept health insurance primarily because it caters to two main groups: uninsured Americans and those with high-deductible plans who prefer to make cash payments for their healthcare. This approach is aimed at helping to maintain lower service prices for its users.

Costco Pharmacy's homepage displays a range of services, including virtual primary care visits priced at $29, comprehensive health checkups (comprising a standard lab panel and a virtual follow-up consultation with a provider) for a mere $72, and online mental health visits available for $79.

David Goldhill, Sesame's co-founder and CEO, emphasized the company's commitment to delivering quality healthcare at an affordable cost, aligning with Costco's reputation for quality, value, and low prices.

Through these discounted rates, Costco and Sesame seek to enhance healthcare accessibility. To access the services at the discounted rates, Costco members are required to create an account and validate their membership via their Costco account.

Sesame's decision not to accept insurance plays a pivotal role in maintaining overall cost-effectiveness, as highlighted in their blog post. The company, which secured $27 million in a Series B financing round last year, claims that costs for services offered through its marketplace have decreased by as much as 67% since its launch in 2020.

Costco, a global retail giant with 861 warehouses spanning various countries, including the United States, Japan, Mexico, Spain, and France, aims to leverage its extensive membership base, which numbered 124.7 million as of May 7.

The company's recent financial statement indicates a 1.9% increase in net sales for the third quarter of fiscal year 2023, reaching $52.60 billion from $51.61 billion in the same quarter the previous year. Net sales for the nine months ending on May 7 reached $160.28 billion, reflecting a 5.5% increase from $151.97 billion in the corresponding period of the prior year. In August, the company reported net sales of $18.42 billion for the month.