Costco, Sesame launch weight-loss program with GLP-1 drug option

Costco (COST) and healthcare system Sesame have joined forces to create a weight loss program offering for Costco's members, including a potential prescription for GLP-1 weight-loss drugs. Sesame CEO David Goldhill joins Yahoo Finance Live to discuss the details of this partnership.

Goldhill states that the aim is to provide "clinical oversight" for individuals seeking weight loss. He notes that while weight loss medication is "appropriate for some patients," it is not suitable for all—with the GLP-1 being recommended on a case-by-case basis. The service includes a physician who will oversee an individual's weight loss journey for three months and evaluate whether a prescription or "other interventions" are needed.

Goldhill emphasizes that Sesame "is not a pharmacy," stating that if drugs were to be prescribed to patients, affordability "is an issue everybody is facing." He highlights that some individuals may receive insurance coverage, while others may be out-of-pocket, but Sesame physicians will help patients navigate the best next steps should a prescription "be appropriate."

Goldhill notes that this program is focused on "personalization," and while "there is a lot of excitement about the GLP-1s," it ultimately comes down to identifying which patients can genuinely benefit, and Sesame will aim to provide the treatment to those individuals.

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Angel Smith

Video transcript

[AUDIO LOGO]

JOSH LIPTON: Costco and its healthcare partners Sesame are expanding into weight loss management. The warehouse retailer will begin offering its members in the US access to weight loss programs and doctors who may prescribe users weight loss medicines like Ozempic or govee Wegovy.

For what this means and what it means for the health care industry moving forward, let's welcome in David Goldhill, Sesame CEO. David, it's good to see you. So it's an interesting service here, David. It sounds like Costco now offering members this weight loss program includes access to these drugs Ozempic, Wegovy, three months service, David, through you all, Sesame for $179. What do you get for that $179, David? Walk me through the service.

DAVID GOLDHILL: Sure. What we provide is clinical oversight of those patients seeking weight loss guidance and potentially Programs it may involve prescription medication, it may not. Obviously, appropriate for some patients, but not all patients. And not even what all patients are interested in.

For the three months that we cover for the 179, you have a choice of a physician, will oversee a program for you, evaluate whether prescription or other interventions are appropriate, and will oversee that during the three month period with constant communication.

JULIE HYMAN: And David, if indeed the patient is eligible, it makes sense for them to be prescribed one of these GLP-1s like a Wegovy or Ozempic, you don't accept insurance, if I'm correct here. So what are-- what are we talking about in terms of out-of-pocket costs for such drugs?

DAVID GOLDHILL: Well, Sesame-- excuse me. Sesame is not a pharmacy. So obviously, Costco has a pharmacy. And a patient can choose any pharmacy they want should a prescription be appropriate here. The issue with the drugs is the same as I think everybody is facing, which is there is some insurance coverage and to the extent that you and a Sesame doctor think that's the right course for you will help with pre-authorization for those with insurance coverage.

For those without the out-of-pocket now is quite costly. And what we do there is help you find appropriate manufacturer's coupons or other programs that might be available. Sesame is a medical service, and Costco obviously is a pharmacy. And we're working together. But as I say, this is not just about the GLP-1s. Obviously, that's increased people's interest in weight loss programs. But again, only for some patients would that make sense.

JULIE HYMAN: Right. That point is well understood. And I hear you on that. I just want to-- I do want to ask you one more question on that front, on the drug front, specifically, because platforms like yours and networks like yours-- and I think this is something we've talked to a lot of people about-- there is sort of this balance now between accessibility, because you want people to be able to get the drugs that they need and supply, because there are some concerns about shortages of some of these drugs. So how do you think about that issue?

DAVID GOLDHILL: Well, I think that's right. I think it may well be that we continue to see shortages in the near term. I think the issue for the patient is, is that an appropriate treatment? And if so, it may be that there are other drugs that you use to titrate your way into the GLP-1 when they become available.

Again, the emphasis on Sesame, I think, it is very different than anyone approaching weight loss is really on the personalization of a program, including as it relates to what pharmaceuticals are available today if that's the right course. I think right now there's obviously a lot of excitement about the chubby ones. And there's a view that we can at some point get through these shortages. But it is the reality of the marketplace now. And again, what we're trying to figure out is what patients is best for and what patients can benefit immediately.

JOSH LIPTON: And David, let's say, you're a Costco member and you signed up for this service. And as you say, it's a personalized service. And you'd be meeting with these clinicians. Who are those clinicians, David?

DAVID GOLDHILL: So Sesame is a marketplace of physicians who accept direct payment, cash payment for their services, for patients who are on high-deductible plans or have limited insurance or are uninsured. Sesame generally offers a much, much lower price to see a clinician across a broad range of specialties. Weight loss is just one of the things we do. But across 40 specialties, Sesame clinicians, because they are direct pay, tend to work at much lower price for those patients.

For the particular programs that we do with Costco and for Costco members, they have access to this cash pay marketplace at an even better rate. And that's something that we've worked on providing for Costco and its members.

JULIE HYMAN: David, it's an interesting program. And we thank you for walking us through it.

DAVID GOLDHILL: Thanks for the time today.

JULIE HYMAN: Thanks.