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CINCINNATI — Kroger Health and Soda Health Inc. have launched a smart benefits program combining the former’s services with the latter’s &more platform. The program allows participating Medicare Advantage, Medicaid and employer benefits program recipients to receive certain pharmacy, nutrition services and other eligible benefits at Kroger pharmacies, in addition to purchasing eligible food and over-the-counter health items. The program is operated and powered by Soda Health, a health tech company working to change the way benefit dollars are used to improve individuals’ health and reduce health inequities.
Benefit resources funded by insurance plans are accessed through Soda Health’s &more debit card to make it easier to purchase nutritious foods and quality health care services at participating retailers. The debit card can also be used to pay for transportation for medical appointments or even personal utility bills.
“The smart benefits program within Soda Health’s &more platform will provide more people with the tools and information they need to make better, healthier choices,” said Kroger Health chief commercial officer James Kirby. “We know food has such a large impact on health outcomes for our customers and patients. By improving access to healthy, affordable food and other health resources, we are working toward truly changing the way America eats.”
The program offers personalized health recommendations, including reminders about health screenings, vaccines, prescription refills and suggestions for medical supplies such as glucose monitors.
“Together, Soda Health and Kroger Health are enabling localized and personalized health care to customers,” said Soda Health cofounder and chief executive officer Robby Knight. “We chose to collaborate with Kroger Health to share the prominent role that ‘Food as Medicine’ plays in health care. Through their services including OptUp and registered dietitians they are working to empower people to make choices that will impact their overall well-being.”
The launch followed Kroger’s release of third quarter results. While sales slipped to $34 billion from $34.2 billion in the year-ago period, adjusted earnings per share rose 8% to 95 cents. Operating profit climbed 8.4% to $912 million.
Gross margin was 22% of sales. The FIFO gross margin rate, excluding fuel, increased 3 basis points compared to the same period last year. The increase in the FIFO gross margin rate, excluding fuel, was primarily attributable to the performance of store brands, sourcing benefits and the effect of Kroger’s break with Express Scripts, partially offset by higher shrink and advertising costs, and increased price investments.
“Kroger’s third quarter results highlight the strength and diversity of our business model in a challenged operating environment, as strong fuel performance and growth in our alternative profit businesses supported continued adjusted net earnings per diluted share growth,” said chairman and CEO Rodney McMullen. “As consumer spending tightens, we are focused on providing customers with exceptional value. By maintaining our long-term commitment to lower prices, personalized promotions and rewards, we are growing households and increasing loyalty, positioning Kroger for sustainable future growth. We appreciate our associates and continue to invest in wages, benefits and training, which is resulting in continued improvements in our customer experience.”
“Our model’s strength allows us to navigate many economic environments,” he added. “We remain committed to balancing investments in associates and greater value for our customers while continuing to generate attractive and sustainable returns for our shareholders.
The LIFO charge was $29 million, compared to $152 million last year. The decrease was due to lower-than-expected year-over-year inflation.
