Costco, Sesame Partner to Offer Telehealth Visits at Discount Prices

September 25, 2023 - Wholesale retailer Costco and healthcare marketplace platform Sesame have partnered to offer Costco members several outpatient healthcare services, including virtual visits, at a discount.

Sesame's marketplace platform connects healthcare consumers with providers nationwide across a wide range of specialties, including dermatology, women's health, mental health, pediatrics, and urgent care. It also connects healthcare consumers to prescribers and emergency department consults. Consumers can access the services in person or via telehealth.

Under the new partnership, Costco members will gain access to virtual primary care at the price of $29, health check-ups that include a standard laboratory panel and a virtual follow-up with a provider at $72, virtual mental health therapy at $79, and 10 percent off all other Sesame services, including in-person appointments.

"Quality, great value and low price are what the Costco brand is known for, said David Goldhill, co-founder and CEO of Sesame, in a company blog post. "When it comes to health care, Sesame also delivers high quality and great value – and a low price that will be appreciated by Costco Members when it comes to their own care."

By providing these discounted rates, Costco and Sesame aim to expand access to healthcare. To receive the services at the discount pricing, Costco members will need to create an account and verify their membership through their Costco account.

Sesame does not accept insurance, which helps keep prices low overall, the blog post states. The company, which raised $27 million in a Series B financing round last year, claims that costs for services provided through the marketplace dropped by up to 67 percent since its launch in 2020.

Costco is a global retailer with 861 warehouses, spanning the United States, Japan, Mexico, Spain, France, and many other countries. As of May 7, the retailer had 124.7 million members.

Its most recent financial statement shows that net sales for the third quarter of fiscal year 2023 increased 1.9 percent to $52.60 billion from $51.61 billion in the same quarter last year. Net sales for the nine months ended May 7 were $160.28 billion, up 5.5 percent from $151.97 billion during the same period the prior year. In August, the company reported net sales of $18.42 billion for the month.

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

Costco joins a growing group of retailers offering telehealth services.

Last year, Walmart's national telehealth provider, MeMD, launched a virtual care program focused on diabetes management. The program allows employers and payers to support their employees and members with type 1 and type 2 diabetes through personalized diabetes education and counseling focusing on behavioral health.

Similarly, supermarket retailer Hy-Vee, Inc. launched a telehealth platform in December 2021 that allows individuals to receive virtual health consultations and prescriptions through the mail. The consultations are offered through a partnership with Reliant Immune Diagnostics' telehealth platform, MDbox.