Costco plans to add another offering to its staples of bulk groceries and holiday decorations: Medicare plans.
The company, which has 626 stores across the U.S., will partner with nonprofit Medicare plan provider SCAN Group to offer the coverage, according to a statement Tuesday.
“Older adults want healthcare that is easier to navigate, more responsive to their needs and rooted in organizations they trust,” SCAN Group CEO Dr. Sachin H. Jain said. “Our expanded partnership with Costco will give us a strong foundation to explore new ways to help people stay healthy and independent”
Costco will provide Medicare Advantage in two states and a Medicare supplemental plan in one state, The Wall Street Journal reported Tuesday.
Tuesday’s news expands on an existing Costco-SCAN partnership. The warehouse club provides prescriptions and eyewear and hearing services for SCAN’s Medicare Advantage customers.
Medicare Advantage, which covers hospital stays and doctor visits, is typically available to those age 65 and older. It provides low-cost medical care through private insurers - premiums average $14 a month, according to the Centers for Medicare & Medicaid Services.
Some 33 percent of Costco shoppers are baby boomers, according to data analysis site Numerator, the target demographic for Medicare insurance.
The companies didn’t indicate which states will offer the plans. SCAN currently provides Medicare insurance in Arizona, California, Nevada, New Mexico, Texas and Washington. Three of SCAN’s Medicare states - California, Texas and Washington - are home to 35 percent of Costco’s U.S. stores.
The Independent contacted Costco for comment.
Neither of Costco’s two main competitors, Sam’s Club and B.J.’s, offer Medicare plans.
Walmart, which owns Sam’s Club, announced in June that its warehouse club launched a Medicare initiative providing one-on-one pharmacist consultations and additional education materials.
Medicare Advantage plans play an important role in a retiree’s financial and physical well-being. The plans’ affordable average monthly premium helps retirees offset medical expenses that will cost, on average, $185,500 from age 65 to death, according to July data from financial services firm Fidelity.
Sufficient medical coverage is critical to managing ongoing medical costs, which create more financial pressure for retirees than one-off medical incidents, according to a February study from data and insights PYMNTS.
“For older consumers living on fixed or semi-fixed incomes, routine healthcare costs reduce monthly cash flow flexibility and heighten sensitivity to billing timing, payment structure and predictability,” the study said.
