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Costco, startup partnering to make health care services available to members

Costco Wholesale is partnering with a startup on a move that will make various medical care available to the retailer’s members. The company it is teaming up with is Sesame.

Costco Wholesale is partnering with a startup on a move that will make various medical care available to the retailer’s members.

Sesame, the company that Costco is teaming with, unveiled the partnership on Monday. Under it, the startup will provide "special discount pricing" for services listed on its online health care marketplace, according to the press release

In late May, Costco said its total number of cardholders stood at roughly 124.7 million. 

Sesame’s marketplace has "primary care doctors and nurse practitioners, more than 40 health specialties, labs and imaging centers, and is inclusive of both virtual and in-person care," the company said.

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The deal for Costco members is available across the country, according to Sesame.

Virtual primary care, health check-ups and virtual mental health therapy are among the services that Costco members can find on the platform, with the company pegging their respective prices at $29, $72 and $79. The health check-up includes a "standard lab panel, plus a virtual follow-up consultation with a provider," according to Sesame. 

The company, which does not take insurance, will also knock 10% off all the other medical care offered through its platform, Sesame said. 

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With its marketplace, Sesame said it aims to replace "historically inefficient, expensive healthcare with a direct connection … between patients and physicians." That, according to the company, makes it possible to have significantly lower prices on health care services for its users.

Groups such as GV, billionaire Richard Branson’s Virgin Group and General Catalyst have put money in Sesame, the startup has previously said. GV stands for Google Ventures. 

The announcement of the Sesame partnership comes ahead of Costco on Tuesday putting out its financial results for its fourth quarter. 

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In the third quarter, the company reported generating nearly $53.65 billion in revenue, including $1.04 billion from membership fees and $52.6 billion from net sales. That marked a year-over-year increase of 2%.

Its quarterly net income, meanwhile, came in at $1.3 billion.

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