Costco shoppers are accustomed to filling prescriptions, buying glasses, getting hearing aids, and even receiving vaccinations during a warehouse trip, but the retailer is now preparing to move much deeper into healthcare. Costco and nonprofit insurer SCAN Health Plan announced August 18 that they are expanding their relationship to develop Medicare insurance products for older adults, marking Costco’s first comprehensive partnership with a Medicare plan. The companies intend to begin with jointly branded Medicare Advantage products in two states and a Medicare supplement plan in a third, although the locations and exact timing have not been disclosed while regulatory approvals are pending. The three initial markets contain roughly five million Medicare enrollees, making this more than a small experiment even though the rollout will initially be limited.
Costco also brings something few health insurers can replicate: 626 U.S. warehouses and an enormous base of older shoppers who already use its pharmacies, optical centers, and hearing services. Roughly one-third of Costco shoppers are baby boomers, giving SCAN access to a population already approaching or enrolled in Medicare. But what will this mean for seniors? Here’s what you need to know about the new program.
