Costco is preparing to offer Medicare plans through a new partnership with SCAN Health Plan, marking the warehouse giant’s first comprehensive move into the senior health-insurance market. The companies say the effort is designed to make care, prescriptions and other health services easier for older Americans to access.
The partnership will begin with jointly branded Medicare Advantage plans in two states and a Medicare supplement plan in a third state, pending federal and state approvals. The companies have not named the states or a start date, but the three target markets include roughly 5 million Medicare enrollees.
Costco and SCAN plan to build a broader suite of senior-focused insurance products over the coming years. Possible benefits include a revamped pharmacy experience, Medflex over-the-counter benefits, vision coverage, hearing care and audiology services.
The plans are expected to be sold in Costco stores, through licensed insurance agents and online. Federal rules prohibit the companies from bundling a Costco membership with a Medicare plan, so enrollment will be based on the plan’s approved service area and eligibility requirements rather than warehouse membership.
Costco is now entering the Medicare market to allow Medicare beneficiaries to have access to its bulk discounts on prescriptions.
My Health Marketplace for All Act would allow them to challenge the current government controlled oligopoly in the employer and individual insurance…
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SCAN Health Plan currently serves nearly 500,000 people in California, Arizona, Nevada, Texas, New Mexico and Washington. Its expanded relationship with Costco builds on earlier programs that allowed some SCAN members to use benefits at Costco and offered rewards for healthy activities.
SCAN Group CEO Dr. Sachin Jain said many seniors face a “disjointed experience” when trying to use health services. He said older Americans want health care that is simpler to navigate, more responsive and connected to organizations they already trust.
“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.
Costco CEO Ron Vachris said the partnership extends the company’s longtime focus on value. “Selecting SCAN as our partner to deliver a better healthcare experience for seniors, is an extension of that commitment,” Vachris said.
The move could give Costco another foothold in services its members use regularly, beyond groceries, prescriptions, optical products and hearing aids. But the program’s actual costs, covered benefits and availability will remain unknown until regulators approve the plans and the companies reveal their rollout details.