Costco answers the call
for quality health insurance
Members
come first
By Hana Medina
LAST SPRING, COSTCO member Denis
Gomez was laid off from his job and left with-
out health insurance for his family of four.
He says he was determined to find an alterna-
tive to the insurance available in unemploy-
ment, and “I was very fortunate to come
across the health benefits available at Costco.”
The Gomez family enjoyed a 33 percent
savings over government-sponsored insur-
ance options after enrolling in Costco’s per-
sonal health insurance. “We were fortunate
that our family physician and dentist were
both considered in-network providers,” says
Gomez. “The transition was seamless.”
Many members are finding that Costco
health insurance is a competitive option, just
like the products in Costco warehouses. Lisa
Castaneda, Costco Services health insurance
manager, says it’s the number-one most-
requested service. “Members count on us to
negotiate for them. Even with health insur-
ance, we create the best plans at the best
price,” she says.
Lisa and her team partnered with Aetna
to design Costco’s proprietary health insurance plans to fit a variety of coverage needs
Costco personal
health insurance
is available in Arizona,
California, Connecticut,
Florida, Georgia, Illinois,
Michigan, Nevada,
Pennsylvania,
Texas and Virgnia.
and budgets. Depending on the state in
which the member lives, up to five plans are
available, each with the option of adding dental coverage. Deductibles range from $3,000
to $7,500.
All plans include a Costco Pharmacy
benefit, which helps keep the costs of the
insurance plans competitive. “Costco’s efforts
to continually drive savings to members is
well demonstrated in the way we price our
prescription drugs. We’re a market leader [in
pharmacy], so why not use our own internal
resources?” says Lisa.
Executive members enrolled in one of the
plans also have access to Health Advocate, a
team of registered nurses who are available by
phone to provide health resources, including
preventive-care advice, treatment options and
cost-comparison information.
More than 10,000 members are enrolled
in Costco’s personal health insurance in the
11 states where it’s available.
Costco’s personal health insurance website offers detailed information and plan comparison tools to find the most appropriate
coverage. But if questions arise while they are
viewing the site, members don’t have to go
through the enrollment process alone.
Custom Benefit Consultants (CBC), an organization of insurance-industry experts, can
walk members through options and offer
continued support beyond the enrollment
process, including assistance with claim disputes. CBC expects to be a resource for members navigating the healthcare changes
coming in 2014.
Chris Cole, a Costco member and private-equity professional, credits CBC with helping
him make the right choice for his family of six.
“I talked to two people who were very professional, pleasant, knowledgeable and very
straightforward,” he says. “They made the process quite painless, and you could always get
them on the phone.” Cole was able to save
nearly 50 percent over the coverage from his
previous health insurance provider.
CBC also can recommend non-Costco
products if they’re a better fit for a member’s
health situation. “It’s really putting your mem-
bers’ needs first,” says Lisa. “Our plan designs
serve the majority of our members, but there’s
a small percent that may be better served by a
different plan.”
Even after different health insurance
options are presented, most members end up
choosing Costco’s offerings, according to
Robin Bahl, CEO of CBC. She says, “If you’re
going to make a healthcare decision, check
with Costco first. There’s a good chance you’re
going to find value there.”
For more information or to enroll in
Costco personal health insurance, visit
Costco.com and click “Services,” then “per-
sonal health insurance.” Reach CBC by dial-
ing 1-888-536-0659, or use the chat or email
options underneath the “Need Live Help?”
section on Costco’s personal health insurance
Web page. C
