Costco membership rate hikes ‘a question of when, not if’ amid healthcare bet

As Costco looks to break into healthcare through a new partnership with virtual care company Sesame, Costco CFO Richard Galanti said in a Sept. 26 earnings call that raising the cost of its membership is a ‘question of when, not if.’

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At the end of the fourth quarter, the company reported that it had 71 million paid household members. Household membership has grown 7.9 percent from last year. The annual cost of Costco business membership is currently $60. 

Through the partnership with Sesame, Costco members will have access to $29 virtual primary care appointments, health check-ups for $72, virtual mental health therapy for $79 and 10 percent off all other Sesame services.

The retail giant reported $77.43 billion in sales for the quarter, an increase of 9.4 percent year-over-year. Costco’s entrance into healthcare comes as other big retailers, such as Walmart, Best Buy and Amazon, are expanding their healthcare offerings.

Hospital officials told Becker’s that Costco’s new offerings will expand access to patient care.

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