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Monday, June 13, 2005

Costco to test sales of health insurance

Tribune staff, wire reports

Published June 13, 2005





Costco Wholesale Corp., the low-cost bulk supplier, is adding health insurance to its warehouse shelves.



In a pilot program to be started next month in Southern California, Costco will offer family and individual coverage to its customers who pay $100 a year for "executive" membership, company officials said. The insurance is aimed at people such as contractors, waiters and students who are self-employed or cannot sign up for plans at work.



Other discount stores such as Wal-Mart and Target have begun offering limited health services in their stores, but Costco says it will be the first to offer insurance to members.



About 18 million households nationally belong to Costco, including 3.4 million who pay for executive membership.



Costco expects to offer coverage throughout California by the end of the year, a Costco executive said.

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