Costco: To Market Health Plans

Costco the low cost and high volume discount warehouse store is adding health insurance to its shelves:

In a pilot program to be launched next month in Southern California, Costco will offer family and individual coverage to its customers who pay $100 a year for “executive” membership, company officials said. The insurance is aimed at people such as contractors, waiters and students who are self-employed or cannot sign up for plans at work.

Although other discount stores such as Wal-Mart and Target have begun offering limited health services in their stores, Costco says it will be the first to offer insurance to members. About 18 million households nationally belong to Costco, including 3.4 million who pay for executive membership.

Company officials would not quote premiums but said the insurance would be 5% to 20% cheaper than policies individuals could buy on their own. Costco expects to offer coverage statewide by the end of the year and may eventually make it available to regular members, said Dellanie Fragnoli, assistant vice president of insurance services at Issaquah, Wash.-based Costco.

Health Insurance first and then out patient helath services and dentistry will follow – or at least be attempted.

Maybe those rumours about Cerec restorations at Costco were not hyperbole.