Costco partners with SCAN Group to launch 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 launch 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 approximately five million Medicare enrollees, though the specific states and launch timing were not disclosed. Under the arrangement, Costco will market health insurance products for older adults, with covered services potentially including prescription drug access, over-the-counter benefits, vision care, and audiology. Plans will be sold in Costco stores, through insurance agents, and other standard channels, though federal rules prohibit bundling a Costco membership with the health plans. SCAN Group CEO Dr. Sachin H. Jain emphasized the plans would integrate closely with Costco's existing offerings. Costco CEO Ron Vachris stated the partnership extends the retailer's commitment to delivering value to members. Costco senior vice president for pharmacy Richard Stephens described the effort as a pilot program. SCAN Health Plan's coverage footprint spans 33 counties across six states, reaching nearly 460,000 members, with the broader SCAN Group network serving approximately 500,000 members and patients. Financial terms of the partnership were not disclosed.