Would You Try Costco Virtual Healthcare? What to Know About Retailer-Sponsored Telehealth

A number of large retail companies have begun offering direct-to-consumer (DTC) telehealth options, bypassing insurance in favor of a cash-only model.

Companies recently entering the market include Costco, Walgreens, GNC, Walmart, CVS and Amazon Clinic, with some telehealth visits costing as little as $29. Followup visits, prescriptions, lab tests, and treatment will cost more.

This DTC-style health care is best suited for “very straightforward, transactional” health issues, such as getting a course of Paxlovid or refilling a prescription, Joe Kvedar, MD, a professor of dermatology at the Harvard Medical School and the former chair of the American Telemedicine Association, told Verywell.

For chronic conditions or a more serious health issue, such as chest pain, an in-office examination is best, Kvedar said. As always, in the event of an emergency, call 911.

Since telehealth has only taken off in the last few years in tandem with COVID-19 precautions, navigating these new options can be confusing. While useful, their scope is limited, and you may have more comprehensive options readily available to you. Here’s what you need to know.

How It Works

You won’t be able to see a doctor for every health need, but these retailers will offer appointments for things like colds, flu, COVID-19, acne, sexual health issues, and prescription refills.

While CVS accepts some insurance plans for its virtual care suite, other retailers currently do not. However, if you have an HSA or FSA, you can use that money to pay for the cost of your care.

Many of the companies don’t employ their own medical staff, but contract with telehealth companies staffed by a range of healthcare professionals, including doctors of medicine, doctors of osteopathic medicine, nurse practitioners, and more.

“Amazon Clinic is actually a marketplace of clinicians—what we’re doing is connecting you to different provider groups from multiple telehealth clinics to give you care,” Nworah Ayogu, MD, MBA, chief medical officer at Amazon Clinic, told Verywell.

Another example, GNC, contracts with different telehealth companies depending on the service offered. For virtual urgent care and virtual primary care, GNC uses Revive Health/SwiftMD. For mental health care, its provider is CCA Inc. The list goes on.

A big draw for consumers is easy access to several first-time and refill prescriptions. Walgreens Virtual Healthcare, for example, requires only a questionnaire about your health for prescriptions for acne and seasonal allergy medications, among a few others, and for refill prescriptions for blood pressure medications. Prescriptions can be denied, however, if anything in your answers indicates a drug may not be right for you. A request for medication for COVID-19 requires a video visit.

“Prescription requests make up a significant portion of consumer demand,” Michael DiLorenzo, chief marketing officer for Sesame, Costco’s partner for DTC telehealth care, told Verywell.

Who Benefits From Cash-Only Telehealth?

A 2020 research letter in JAMA Network Open found that 87% of site visits for one DTC telehealth company were for urinary tract infections, erectile dysfunction, or contraception—all health issues that are covered by most of the newer DTC telehealth companies. The researchers concluded that DTC sites may help address barriers to care, such as the inconvenient hours and confusing appointment systems of traditional practices. The study also suggested that some people may feel more comfortable addressing a sexual issue with a provider they don’t know.

DTC sites may is often the most practical option financially, too.

“Cash-only telehealth may be a less expensive option, at least for initial visits, for people who don’t have health insurance or whose deductibles or copayments are very high,” Keith Horvath, MD, senior director of clinical transformation at the Association of American Medical Colleges, told Verywell. 

Other Health Care Options You Should Know About

Before you commit to paying out-of-pocket for virtual care from a place like Costco or CVS, check to see if your doctor, employer, or health insurer offers their own version of free or low-cost care, Horvath said.

For example, patients whose doctors are part of the Mount Sinai Health System in New York City have access to free video and text visits with providers who also have access to their health records.

Some employers cover membership to One Medical, a national primary care practice owned by Amazon (but not connected to Amazon Clinic) that offers chats and video visits along with in-person care. Amazon Prime members can add it to their Prime subscription for $99 per year.

Many health insurance companies have added virtual care options that are cheaper than in-person urgent care. For instance, Aetna’s Teledoc service is typically $45 or less per visit.

People turning to DTC telehealth for care because they lack insurance may not know there are other free or low-cost options. Those include free and reduced-cost community clinics, the opportunity to sign up for Medicaid year-round if you are eligible, and health insurance through the federal and state marketplaces. Cost for marketplace insurance is based on income, and you may qualify for government assistance that can make your monthly costs for health coverage very low.