Costco to sell health insurance

When COSTCO came to our town in OR last year I discovered that we couldn't get health insurance because our stat only let a few companies sell insurance. I am supporting a disabled husband, two college students and a son with severe mental health issues and no income. I am working two part time jobs. I have been employed with my first job for 17 years. In the last two years they cut most of the positions to part time and cut benefits to the majority of  employees. My two sons have OHP, my husband ATRIO medicare supplement. His rx costs are only covered for about 1/2 the year. My 19 year old college student daughter has health issues and no insurance. She is getting $110.00 a week on unemployment. This makes her unable to get benefits because she is over income because her income is considered unearned income. I also have no health insurance and my wages have been garnished for years because of my husbands health. We need some changes before my daughter's credit rating is as bad as mine.

Peoples responses on this board are for the most part fairly uninformed.  This isn't really a political issue. 

Costco is basically acting as a broker for Aetna.  Costco is doing this as it has a large and loyal customer base who value the company's ability to provide goods and services at costs lower than their competition.  Aetna is partnering with Costco because of the same reason - it's ability to reach consumers.  Costco will be able to negotiate a margin with Aetna that will allow them to make a small profit on the policies they sell.    Aetna's actuaries will set premiums at a level that diversifies the risk over the broad base of insured individuals and allows for enough money to pay claims made on the policies, pay their employees, and their vendors.

PPACA (or Health Care Reform / Obamacare)  Has established a claims 80/20 mandate for the funds that are paid in as premiums.  Meaning - at least 80% of all the premiums paid in must go to pay for claims or expenses incurred by the insured.   The remaining 20% or less is used to pay Aetna's employees, their vendors, and their agent commissions (in this case Costco is acting as a form of agent).

When you think about it - 20% or less of a company's total revenues has to cover the cost of all of their expenses, buildings, technology, commissions to brokers.  If/ when there is anything left over they may pass along some dividends to shareholders.

There are many more luctrative businesses that escape attention for reaping large profits because their products are less irritating to use (the health care system is a giant PIA to use).  think of your I Phone if you have one.  Apple pays crapola wages in 3rd world countries to produce a slick, easy to use technology and probable profits over 100% of the costs associated with production.

I'm just offering some perspective here. 

@Soccerdad1849, Individual" health Insurance" (at least that's what it's called on my insurance license) is indeed regulated by the states, and although they don't "set" the rates, insurance companies must get their rates approved and can only apply for changes no more than once every 12 months. They will only have ONE set of rates per risk class and they can't discriminate by allowing one agency to offer lower rates than any other agency.

" Anybody who would choose to purchase Medical Insurance through Costco will be able to get the EXACT same plan(s) employees have to choose from, and Aetna is Costco's Medical Insurance provider."

This is demonstrably false. Costco employees are covered under a "GROUP" plan (this actually falls under federal regulations, ERISA to be precise). In fact Costco's employee coverage is a self-funded plan, Aetna just administers it. So if you're covered under your wife’s plan, you're not really even insured by Aetna, but Costco directly. There's nothing wrong with that, with larger employers, that's usually the way to go. But make no mistake about it. Costco is NOT selling the same plan to the general public that it provides to its employees. They couldn't even if they wanted to. The employees have a custom designed group plan that is guaranteed issue. The plans they want to sell to the public will be generic, fully underwritten individual policies, that will also be available through any other agency for the same price. It all comes down to who the customer wants to do business with, and who will provide the best customer service.