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Costco To Sell Individual Health Insurance, Mortgages

Tuesday, May 8, 2012 - 3:30 PM
From Clark Howard's show notes
The warehouse club is partnering with Aetna for what's called Costco Personal Health Insurance. Aetna has publicly stated that they will sell five varieties of plans to Costco members cheaper than individuals plans are sold elsewhere.

The Costco Personal Health Insurance policies are so far only available to customers in Texas, Connecticut, Illinois, Michigan, Arizona, Pennsylvania, Nevada and Georgia.

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Ken TuminKen Tumin5,472 posts since
Nov 29, 2009
Rep Points: 125,708
1. Tuesday, May 8, 2012 - 5:13 PM
Very interesting. I wonder if the reason why these plans are limited to these select few states is because Aetna and other insurance companies are relatively less burdened in these states by the onerous mandates and other burdensome regulations imposed on health insurers without regard to cost to the policy holders and the companies..
loulou554 posts since
Aug 3, 2010
Rep Points: 3,434
2. Wednesday, May 9, 2012 - 7:37 AM
CEO's voted Michigan as the 47th worst state to do business in. It was in the papers last week.
Ally6770Ally6770942 posts since
Jan 16, 2010
Rep Points: 2,740
3. Wednesday, May 9, 2012 - 9:36 AM
I don't think that would be a factor. If Aetna is willing to sell policies itself in those states, then there are no state-imposed rules that would make it less desirable to do so via Costco. It appears that this is simply Costco setting up a group plan no differently than anyone else, such as an employer. If Aetna is happy to sell to other group plans in those states, why not this one? 

I suspect the reason more likely is simply one of Costco ramping up and testing. They simply did so in those states first. They probably will wait and see how it goes, using those first ones as a test, and then expand to other states. And if the early states work out well and with a lot of people signing up, that only gives Costco more leverage to negotiate a better plan when they expend to new states.
me1004me1004373 posts since
Jan 16, 2010
Rep Points: 2,600