Costco partners with SCAN Group to launch branded Medicare Advantage plans

Published Aug 18, 05:10 PM UTC

Costco Wholesale Corporation has announced a partnership with nonprofit insurer SCAN Group to sell Costco-branded Medicare plans, marking the retailer's first entry into the Medicare market. The companies plan to begin with Medicare Advantage products in two states and a Medicare supplement plan in a third, pending regulatory approval from the Medicare agency. The three target markets collectively include around five million Medicare enrollees, though the companies declined to name the specific states or disclose timing due to restrictions while plans await approval. Under the arrangement, Costco will market branded health insurance products for older adults, with covered services potentially including prescription drug access, over-the-counter benefits, vision care, and audiology. The plans will be sold in Costco stores as well as through insurance agents and other standard channels, though federal rules prohibit bundling a Costco membership with the health plans. Costco described the effort as a pilot program, with pharmacy senior vice president Richard Stephens stating the company aims to learn from the initiative and ensure the right product for members. SCAN Group's coverage footprint spans 33 counties across six states, reaching close to 460,000 members.