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Hot Dogs, Patio Furniture, and Now Weight Loss Drugs at Costco

Hot Dogs, Patio Furniture, and Now Weight Loss Drugs at Costco

Released Wednesday, 10th April 2024
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Hot Dogs, Patio Furniture, and Now Weight Loss Drugs at Costco

Hot Dogs, Patio Furniture, and Now Weight Loss Drugs at Costco

Hot Dogs, Patio Furniture, and Now Weight Loss Drugs at Costco

Hot Dogs, Patio Furniture, and Now Weight Loss Drugs at Costco

Wednesday, 10th April 2024
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Episode Transcript

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1:00

WONDERY, I'm David Brown and this is

1:02

Business Wars Daily on this Wednesday, April

1:05

Last fall, we told you about

1:07

a new partnership between Costco and

1:09

a telehealth platform called Sesame, which

1:11

connects medical providers with patients nationwide.

1:14

It meant that in addition to bulk paper

1:16

towels, patio furniture, and hot dogs, Costco

1:19

members, all 130 million

1:21

of them, could have access to low-cost

1:23

telehealth care. Around two

1:25

months after the announcement, however,

1:27

Costco and Sesame noticed something.

1:30

Sesame co-founder and president Michael Bada

1:32

told CNN that one in five

1:34

inquiries from patients using the program

1:37

was about one thing, weight

1:39

loss. Weight loss wasn't

1:41

the sole point of the initial partnership,

1:43

Bada said, but when more and

1:46

more customers asked about it, the wheels started

1:48

turning. The result? A renewable

1:50

three-month program officially launched last

1:52

week. Costco members can

1:55

now access video consults with doctors, prescriptions

1:57

for weight loss drugs and ongoing support,

1:59

and more. through unlimited messaging

2:01

and guidance from healthcare providers.

2:04

Costco plans to offer oral weight

2:06

loss medication in addition to injectable

2:09

semiglutides, Ozempic, Wigovi, and the

2:11

like. The catch is that

2:14

the cost of that medication is not included in

2:16

the new plan, which costs around $180 every three

2:18

months. The

2:21

cost of the injectable semiglutides can range between

2:23

$950 and $1600 a month without

2:27

insurance, which this Sesame-Costco

2:30

partnership does not take. Still,

2:33

executives hope that the program can help serve members

2:35

looking for accessible out-of-pocket

2:37

healthcare and draw in new

2:40

cardholders, of course. Around the

2:42

time that Costco rolled out its telehealth

2:44

program last fall, another big name was

2:47

launching its direct-to-consumer healthcare platform nationwide. That

2:50

big name is Amazon, which by the way

2:52

is the parent company of Wondering. Amazon's

2:54

telehealth clinic gives patients 24-7 access to providers,

2:58

and like Costco's offerings, isn't covered

3:01

by insurance. And

3:03

now Amazon's pharmacy division, which was launched in

3:05

2020, is making

3:07

similar moves to Costco's. Amazon

3:09

Pharmacy has just teamed up directly

3:11

with Eli Lilly to, you guessed

3:13

it, sell more injectable weight loss

3:15

drugs. Eli Lilly is

3:17

the maker of Ozempic and its counterpart,

3:19

Zepbound. It used to be that Lilly

3:21

would stock places like CVS and Walmart with its products,

3:24

which would then be prescribed to patients. Now

3:27

Lilly is moving towards skipping the middleman and

3:29

going direct-to-consumer with the

3:31

help of Amazon Pharmacy. The idea

3:33

is that Amazon has reach and

3:35

lots of it. So

3:38

they're thinking, why not use it to get these

3:40

drugs into the hands of more people? Lilly

3:43

isn't Amazon Pharmacy's only partnership. It recently struck

3:45

a deal with Blue Cross Blue Shield of

3:47

Florida, which made Amazon its

3:49

default home delivery option. It

3:52

also has a similar deal with Blue Cross Blue

3:54

Shield of California. The popularity

3:56

of weight loss drugs has exploded, and it

3:58

doesn't seem to be slowing down. anytime soon,

4:01

which means for platforms like Sesame

4:03

and Amazon, weight loss could

4:06

be a big win. From

4:10

Wondery, this is Business Wars Daily. I'm

4:12

your host David Brown, written and produced

4:14

by Jessica Mormosky. Our executive producers

4:17

are Tina Rubio and Marshall Lewis. Hey

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Prime members, you can listen to

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Business Wars Daily ad-free on Amazon

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Music. Download the Amazon Music app

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today or you can listen ad-free

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