Costco Health Insurance Review: Okay, But Better Options Exist
Costco sells health insurance for businesses, but you can probably get better coverage somewhere else.
Find Cheap Health Insurance Quotes in Your Area
Costco health insurance isn't bad, but you can probably find better options for yourself or your business by shopping on HealthCare.gov or with an agent. Costco medical insurance is for small and large businesses and comes from a partnership with Custom Benefit Consultants (CBC). You can also get personal health insurance from CBC, although it isn't through the Costco partnership.
Pros and cons
Pros
Offers coverage for small and large businesses
Lets businesses compare different options
Comes with a support team for policy management
Cons
Must be a Costco member
Coverage isn't actually from Costco
Individual plans aren't through the Costco partnership
What is Costco health insurance?
Costco sells medical insurance for businesses through a partnership with Custom Benefit Consultants (CBC).
CBC helps you shop for and compare health insurance for your employees, called group health insurance. The coverage doesn't actually come from Costco. You'll still pick an insurance company that will provide coverage for your employees. You have to be a Costco member to get quotes for Costco business health insurance.
Costco doesn't sell health insurance for individuals and families, but you can still get coverage by shopping with CBC. Because the individual plans aren't through the partnership with Costco, you don't have to be a Costco member.
Should you buy Costco health insurance?
Costco health insurance probably isn't the best option for most businesses.
Group health insurance plans can be complex, and it's likely better to work with a local agent to help you create a plan that's right for your business and employees.
If you're a small business, you can also shop for insurance on HealthCare.gov.
Group health insurance for large businesses is more complex. If you're in charge of choosing the health insurance plans for a large business, you should work with a licensed agent to make sure the plans fit the needs of the business and employees.
Costco business health insurance
If you're a business owner and a Costco member, you can get business health insurance through Costco's partnership with Custom Benefit Consultants.
On top of getting health insurance, small businesses can also add additional coverage for their employees, like dental, vision and disability coverage and life insurance. You'll also get access to a "Healthcare Ambassador" who can help you manage your plan by answering questions, helping you compare options and making recommendations.
If you own a large business, CBC can help you look at network and pharmacy discounts, plan administration, disease management programs and reinsurance. You'll also get access to CBC's contact center for questions and problems.
Costco personal health insurance
You can also get health insurance for yourself and your family through Custom Benefit Consultants. But the coverage doesn't come through the partnership with Costco and you don't have to be a Costco member to get quotes.
CBC can also help you shop for Medicare coverage and several other types of insurance.
- Dental
- Vision
- Short-term health insurance
- Hospital indemnity
- Accident
- Critical illness
How do you get Costco health insurance?
You can get Costco medical insurance for your business by getting a quote from CostcoQuote.com.
You can then select if you want coverage for a small or large business. The tool will walk you through the steps to getting quotes, and you can call, chat or email CBC if you have questions or need help.
If you want personal health insurance, you'll need to go directly to Custom Benefit Consultants. Remember that personal health insurance from CBC doesn't come from the partnership with Costco. The quotes are the same as you'd get on HealthCare.gov or a state marketplace site.
Costco health insurance cost
The cost for Costco health insurance depends on the type of coverage you need and the features you select.
Coverage for large businesses is likely going to be more expensive than coverage for small businesses. Rates also depend on the company you choose and where your business is located.
The average cost for personal health insurance is $621 per month for a Silver plan.
If you get personal insurance through Custom Benefit Consultants, your rates depend on five things.
- Your age
- Where you live
- The plan tier you buy
- How many people you want on your plan
- Whether you smoke or use tobacco
Your rate will also change depending on the company you pick.
Costco employee health insurance
If you work at Costco, you might get health insurance through your job.
Costco employees report that the coverage comes from Aetna, although different stores may use different companies and plans.
Whether or not you get health insurance as a Costco employee likely depends on how long you've worked for Costco and whether or not you are a full-time employee. If you're not sure about the health insurance perks at your job, asking your manager or human resources department is the best way to learn more.
Health care with Costco
In 2023, Costco partnered with Sesame to offer low-cost health care to members.
Sesame is a healthcare marketplace that connects you directly to doctors. If you're a Costco member, you can get medical care through Sesame for lower prices than you might pay otherwise.
- Virtual primary care visits: $29
- Health checkups: $72
- Virtual therapy: $79
- Management for mental health medication: $65 per month
You'll also get 10% off other Sesame services and in-person doctor appointments that you set through Sesame.
Frequently asked questions
Does Costco offer health insurance?
Costco members can buy group health insurance through the company's partnership with Custom Benefit Consultants. If you work at Costco, you might get health insurance from your job depending on how long you've worked there and if you are full- or part-time.
Is Costco health insurance good?
Costco medical insurance is only for businesses. It's not bad, but it's probably better to work with an agent to get coverage for your employees. That way, you can make sure you choose a plan that works for the specific needs of your business.
Do I have to be a Costco member to get Costco health insurance?
Yes, you have to be a Costco member to get quotes for Costco business health insurance. You can get quotes from Custom Benefit Consultants (CBC) for personal health insurance without having a Costco membership, though. Costco doesn't have a partnership with CBC for personal health insurance.
Methodology and sources
Average health insurance rates come from public use files (PUFs) on the Centers for Medicare & Medicaid Services (CMS) government website. Costs are averages for a 40-year-old with a Silver plan.
Sources for this article include Costco, Custom Benefit Consultants, Inc. (CBC) and Sesame.
Editorial note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.