Byline: David Phelps; Staff Writer
Shoppers who buy in bulk at Sam's Club can now pick up some health care bargains there along with multipacks of paper towels.
In a deal announced Monday, Sam's Club said it has teamed with Minnetonka-based UnitedHealth Group Inc. to offer discounts of up to 50 percent on health services not traditionally covered by insurance, such as hearing aids and eyeglasses.
The discounts will be offered through a program run out of a division of UnitedHealth and be available to 46 million members in 552 Sam's Club locations.
UnitedHealth spokesman Mark Lindsay called the relationship a unique, if not unprecedented, pact between a retailer and a health services company. But he downplayed its financial significance.
'It isn't so much because there's money to be made but because there are needs to be satisfied,' Lindsay said. 'When people are left out of the system, it raises costs for everyone.'
Cara Kinzey, membership vice president for Sam's Club, said the discount program 'is a cost-effective way to help make quality health care more affordable for small businesses and their employees.'
Sam's Club is a division of Wal-Mart Stores Inc., the Bentonville, Ark., retail behemoth that caters to middle America and is known for its discounted pricing. The Sam's outlets are aimed at small-business owners, but membership is open to the public.
The discount program will be provided through HealthAllies, a California-based company acquired by UnitedHealth about 18 months ago. HealthAllies uses its bulk purchasing power to negotiate discounts with health care providers that it passes on to its subscribers, in this case Sam's Club members.
Sam's Club members will be able to receive discounts with providers designated by HealthAllies on a range of services, including dental care, laser eye surgery, chiropractic care, acupuncture, weight loss and fitness club membership.
Both companies said the program is meant primarily to complement existing health care coverage.
However, Sam's Club said the program would give its members better access to care if they do not have regular health insurance. Wal-Mart spokeswoman Jolanda Stewart declined to comment on the health insurance needs of its clientele but noted that the company does 'quite a bit of surveying of our members to determine what they need.'
The discount program will be free to Sam's Club Plus members and to all other members for a fee expected to be $9 a month.
Sheryl Skolnick, a Wall Street stock analyst for Fulcrum Global Partners, said it's uncertain how many Sam's members might want to buy the services being offered through UnitedHealth, but there's clearly a large potential audience.
'Sam's has about 46 million customers. If you can tell me how many of those will sign up, you're a better fortune teller than I,' Skolnick said. 'On the other hand, Sam's customers say that finding ways to lower their health care costs is a priority.'
David Phelps is at dphelps@startribune.com.
