Costco to offer Medicare plans as part of major new expansion. What to know

A major retailer is entering the Medicare market, with Costco announcing a new plan for customers.

The popular retailer said it will expand its partnership with the nonprofit SCAN Health Plan to provide Medicare insurance.

“The expanded alliance marks Costco’s first comprehensive partnership with a Medicare Plan,” the companies said in a release.

The partnership is reportedly slated to begin with a limited rollout of Medicare advantage plans in two states and a Medicare supplement plan in a third. The three states have not been identified and the plans are pending federal approval.

“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,” Ron Vachris, CEO of Costco, said in a statement. “Selecting SCAN as our partner to deliver a better healthcare experience for seniors, is an extension of that commitment.”

SCAN provides Medicare advantage plans to over 400,000 people across five states, including California, Arizona, Nevada, Texas, New Mexico, and Washington. It’s not clear if the Costco partnership will expand to new states, however.

“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,” Dr. Sachin H. Jain, CEO of SCAN Group, said in a statement. “Older adults want healthcare that is easier to navigate, more responsive to their needs and rooted in organizations they trust. Our expanded partnership with Costco will give us a strong foundation to explore new ways to help people stay healthy and independent while delivering the quality, value, and service both of our organizations are known for.”

Timing for the rollout has not yet been announced.