Costco is entering the Medicare market. The warehouse club (NASDAQ:COST) is partnering with nonprofit SCAN Health Plan to launch co-branded Medicare Advantage plans in three states.
The companies announced the expanded partnership Tuesday. The initial markets cover roughly 5 million possible eligible Medicare enrollees, though specific states and launch timing have not been disclosed because the products are still pending federal regulatory review and approval.
Plans will be sold inside Costco warehouses, through insurance agents, and online. Federal rules prohibit tying the coverage to a Costco membership, so shoppers will not need a membership card to enroll.
SCAN CEO Dr. Sachin Jain said the goal is simpler, more integrated benefits that work with Costco’s existing pharmacy, vision, hearing, over-the-counter, and grocery offerings. Costco CEO Ron Vachris described the move as an extension of the retailer’s focus on value and health services for members. Said, CEO Ron Vachris:
“For more than 40 years Costco has consistently listened to our members and earned their trust delivering consistent value on essential goods and expanding our health service offerings. selecting SCAN as our partner to deliver a better health care experience for seniors is an extension of that commitment“.
The arrangement builds on an existing relationship in which Costco already serves as a preferred pharmacy for many SCAN members.
What Seniors Should Know Before Open Enrollment
This is a limited pilot, not a nationwide launch. Premiums, provider networks, drug formularies, and extra benefits have not been released. Seniors should not change coverage based on the announcement alone. Medicare open enrollment typically runs Oct. 15–Dec. 7, so any approved plans would likely become available then or later.
The news arrives as some large Medicare Advantage insurers face rising medical costs and have begun trimming plans. Costco already operates a Medicare plan comparison marketplace in multiple states; the new co-branded products would go a step further by putting the Costco name directly on the insurance.
Quote by Ron Vachris graciously provided by Costco PR. SCAN was contacted as part of this story.
Editors disclosure: Generative AI was used in the intial draft of this story. All facts were checked by the author.
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