Costco Wholesale is entering the Medicare Advantage market through a strategic partnership with SCAN Health Plan, the nonprofit insurer announced this week.
New Products for Seniors
The collaboration will initially launch Medicare Advantage products in two states and a Medicare supplement in a third. Officials said the two companies are also working on integrated benefits, pending regulatory approval. This includes a reimagined pharmacy experience, Medflex over-the-counter benefits, vision, audiology, and other services.
The Wall Street Journal first reported the news on Tuesday. The publication noted Costco is looking to launch a limited rollout of Costco-branded Medicare plans, working with SCAN Group. This expanded alliance marks the retailer’s first full partnership with a Medicare plan.
SCAN and Costco plan to launch a suite of senior-focused insurance products over the coming years as older adults handle their health coverage. The offerings will include pharmacy, vision, and hearing benefits.
Expanding the Network
SCAN Health Plan is a nonprofit Medicare Advantage plan serving six states. The company serves nearly 460,000 members across 33 counties in California, Arizona, Nevada, Texas, New Mexico, and Washington.
Karen Schulte, president of SCAN Health Plan, said in May that the organization is now one of the 10 largest Medicare Advantage organizations in the country. She noted the growth came after the company expanded beyond its roots as a California-only health plan.
Dr. Sachin H. Jain, CEO of SCAN Group and SCAN Health Plan, emphasized the role of partnerships in the program. “For the millions of older adults who rely on Medicare Advantage, the future of the program depends on strong partnerships that make healthcare more accessible, more connected and more seamlessly integrated into everyday life,” Jain said. “Older adults want healthcare that is easier to handle, more responsive to their needs and rooted in organizations they trust.”
Costco’s physical footprint offers a unique advantage in this model. The retailer operates hundreds of warehouses across the United States, creating a dense network of access points that can serve as hubs for health services. This geographic distribution allows for a physical presence in communities that often lack convenient care options, potentially reducing the friction for seniors managing complex health needs. The partnership leverages the retailer’s existing infrastructure to deliver these integrated services directly to the consumer.
Partnerships are key for handling complex healthcare systems, especially when barriers to information exist. Penalties for healthcare information blockers take effect this year, impacting how organizations interact with patients.