A Costco Health Service You Never Knew About Could Save You A Ton Of Money

When you think of Costco, you probably think of Costco's cheap gas or its Kirkland Signature brand products. You would not, however, probably think of employer health insurance. Yet, the warehouse club retailer has its CBC Health Insurance Marketplace,  which can help members manage their employee healthcare plans alongside providing access to a licensed healthcare ambassador that can answer questions about claims. Businesses with at least two employees can join, and because Costco buys coverage in bulk, using CBC can lower what members have to pay and cut health insurance costs by up to 55%.

Each plan charges a fixed monthly fee that covers program management and stop-loss insurance against large medical bills. Plus, any funds left after a nine-month run-out period — to settle pending claims — are returned to the employer. Costco's case studies note just how much business owners can save, with one distribution firm cutting its healthcare costs by 25%, whereas another employer recovered $1.6 million after a full plan review. 

To set up a business healthcare plan, a Costco business member will need to complete a survey with CBC Health Insurance, including information like how many employees they have, their ZIP code, and preferred coverage option. However, before signing up, remember to do your due diligence – CBC acts as a licensed broker and not an actual insurer, so its site might leave out options.

CBC's core health offering is its Level-Funded Advantage lineup in which employers can pick from major insurers like UnitedHealthcare — which can give employees access to 1.7 million doctors and 7,000 hospitals. Regence also lets small companies offer up to five plan options at once to employees without added cost. For companies that want more flexibility, the marketplace also offers an Individual Coverage HRA – in which employers reimburse their employees for qualifying individual health insurance premiums that the employee chooses. With this option. employers can choose which groups of workers are eligible, and set a tax-free monthly allowance. Employees then use this money to shop for their own compliant health plans. 

Dental and vision can be added as well. In fact, small-group dental plans from Guardian, Principal, Ameritas, UnitedHealthcare, and MetLife all cover basic and major care, including cleanings and crowns. Ameritas vision plans connect to the VSP Choice network, so most members can get exams and glasses at Costco Optical using in-network pricing. There is also group life insurance that can give coverage equal to one or two times an employee's annual salary — often with no medical exam required. Employees can also add worksite insurance plans, which include accident, critical illness, and hospital stay coverage.