Costco Wholesale Corporation (COST) is known for bulk groceries, oversized toilet paper packs and, of course, that famous $1.50 hot dog. But the warehouse giant is quietly adding something very different to the shopping list – Medicare.
According to the Wall Street Journal, Costco is preparing to enter the massive Medicare market through a partnership with SCAN Group, a nonprofit insurer. The plan is to launch Costco-branded Medicare Advantage products in two states, along with a Medicare supplement product in a third. The companies have not disclosed the exact locations because federal regulatory approval is still pending. Together, those three markets represent roughly 5 million Medicare enrollees.
