In an exciting development for both Costco (Nasdaq: COST) members and the behavioral health industry, the wholesale retailer has entered the mental health and medical services space through a new partnership with Sesame, a telehealth marketplace. This move makes Costco one of the latest retail giants to expand into healthcare services, joining the ranks of other major players like Walmart and CVS Health. By leveraging Sesame’s telehealth platform, Costco is now offering its members access to a wide range of outpatient medical services at a discounted rate, further expanding the retailer’s focus on providing affordable options for its loyal customers.
The new collaboration is a significant step forward in Costco’s approach to healthcare. Members can now take advantage of virtual mental health therapy visits for as low as $79, making affordable mental health services more accessible and affordable for many. In addition to mental health services, the partnership provides virtual primary care visits at just $29, making healthcare consultations more affordable and convenient. For those needing health check-ups, Costco members can access lab work and a follow-up consultation for $72, all through Sesame’s platform. On top of these offerings, Costco members also receive a 10% discount on Sesame’s in-person healthcare appointments, which includes a range of medical services.
One of the key features of this partnership is that Sesame operates as a self-pay healthcare marketplace, meaning all services are cash-based, and the company does not accept insurance. While this model may seem unconventional, it presents a unique opportunity for customers who may not have access to traditional insurance or are looking for more transparent pricing for healthcare services. The self-pay structure could be particularly appealing to those who want straightforward, affordable options without the complexity of insurance claims and billing. This makes the offering from Sesame and Costco particularly valuable for anyone seeking affordable mental health services without the added costs of traditional insurance models.
David Goldhill, Sesame’s co-founder and CEO, expressed his enthusiasm for the partnership, emphasizing how it aligns with Costco’s long-standing reputation for offering great value at low prices. “Quality, great value, and low price are what the Costco brand is known for,” said Goldhill. “When it comes to healthcare, 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 combining Costco’s trusted brand with Sesame’s innovative healthcare model, the partnership aims to provide members with accessible and affordable healthcare options, including affordable mental health services.
Sesame, founded in 2018, has quickly established itself as a leader in the telehealth space, particularly for those seeking affordable, transparent healthcare services. The company raised $27 million in a Series B funding round in 2022, bringing its total funding to over $50 million. This significant investment underscores the growing interest in alternative healthcare models that prioritize affordability and accessibility, especially in a time when traditional healthcare costs are rising. This emphasis on providing affordable mental health services is part of a broader movement to make care accessible to everyone, regardless of their insurance coverage or financial situation.
The partnership with Costco comes at a time when more retailers are stepping into the healthcare sector. Walmart (NYSE: WMT), for example, began offering counseling services at select Walmart Health centers in 2020, charging customers just $1 per minute for sessions with counselors. In 2022, Walmart teamed up with UnitedHealth Group (NYSE: UNH) to roll out a value-based care model at 15 Walmart locations, with behavioral health services as a core component of the offering. Similarly, CVS Health (NYSE: CVS) has significantly expanded its behavioral health services, including staffing licensed mental health professionals at its MinuteClinics. As of May 2023, CVS had staffed six MinuteClinics in Los Angeles with licensed mental health professionals, with more locations planned across the country. The growing interest in affordable mental health services is clear, as these retailers continue to prioritize accessible care for all.
These retailers are tapping into a growing demand for affordable, accessible healthcare services, particularly in the behavioral health space, where there has been a nationwide shortage of mental health professionals. The rise of telehealth services, combined with the increasing use of digital health tools, has made it easier for people to access care from the comfort of their homes, reducing the barriers to treatment. This shift is critical in addressing the mental health crisis and ensuring that affordable mental health services are within reach for more people across the country.
For Costco, the partnership with Sesame allows the retailer to continue expanding its service offerings beyond traditional retail, making healthcare more accessible to its members. It also demonstrates a larger trend in the retail sector: as consumers face rising healthcare costs and a lack of access to timely care, retailers are stepping in to fill the gap, offering innovative solutions that prioritize convenience and affordability. Costco’s commitment to providing affordable mental health services reflects the changing landscape of healthcare, where access to quality care is no longer limited by insurance networks or expensive co-pays.
With Costco now joining the growing list of retailers offering behavioral health services, it’s clear that the future of healthcare is moving toward more accessible and consumer-friendly models. Whether it’s virtual therapy, primary care, or health check-ups, Costco’s partnership with Sesame brings affordable healthcare options to its members, paving the way for more companies to explore how they can make a meaningful impact on the healthcare landscape. This partnership is an exciting step in the movement to provide affordable mental health services to a broader audience, offering a future where mental health care is prioritized and easily accessible.
This shift in the retail space also signals a broader change in how behavioral health is perceived. With major companies like Costco, Walmart, and CVS expanding their healthcare services, it’s clear that mental health care is becoming an integral part of mainstream healthcare offerings. The growing acceptance of affordable mental health services as an essential part of overall wellness, along with the rise of affordable, cash-based healthcare platforms like Sesame, is paving the way for a future where mental health is prioritized and accessible to all.
