Costco Is Getting Into the Medicare Business
Costco really does sell just about everything. Now, we can add Medicare plans to the list.
Costco is expanding its partnership with SCAN Health Plan to offer jointly branded Medicare products, marking the retail giant’s first partnership with a Medicare plan.
While we probably won't be tossing health insurance into the cart between the rotisserie chicken and a 30-pack of paper towels, Costco healthcare is officially venturing into the insurance world.
Costco Medicare Plans Are Coming
The partnership isn't going nationwide right out of the gate. Costco and SCAN initially plan to offer Medicare Advantage plans in two states and a Medicare supplement plan in a third.
The companies haven't revealed those states or an exact launch date yet because the products are still awaiting regulatory approval. Together, though, those three markets contain roughly 5 million Medicare enrollees.
The Costco Medicare Advantage plans are also expected to tie into some services Costco already offers. Pending approval, the partnership could eventually include:
Pharmacy benefits
Over-the-counter benefits
Vision care
Hearing benefits
SCAN says the companies plan to continue developing additional products for older adults throughout the next several years.
You Won't Get a Free Costco Membership
We wondered, too. The new Medicare products won't come with a complimentary Costco membership because federal regulations don't allow it.
The plans themselves, however, are expected to be sold through Costco stores, as well as insurance agents and online.
That means we may eventually be able to head into Costco for a rotisserie chicken, get our glasses adjusted, fill a prescription, and inquire about Medicare before heading home with enough toilet paper to last through 2029.
Costco Was Already Dipping a Toe Into Healthcare
This partnership isn't quite as out-of-left-field as it may sound. Costco and SCAN first teamed up in 2025 to allow eligible SCAN members to use certain benefits at Costco locations.
The companies have also worked together on Medicare Advantage programs encouraging healthy habits. But this new arrangement takes things considerably further.
Costco CEO Ron Vachris said the company sees its partnership with SCAN as an extension of the value it already tries to provide its members, while SCAN CEO Dr. Sachin Jain has emphasized making healthcare easier for people to navigate.
Why Costco Might Make Sense
Health insurance and bulk groceries don't seem like obvious teammates. But Costco has something particularly valuable when making a complicated purchasing decision: trust.
Dr. Sachin Jain told Fierce Healthcare that Medicare Advantage can be difficult for folks to understand. The thinking behind the partnership is that Costco members already trust the retailer to narrow down products and offer things with good value.
These new insurance products will give Costco and SCAN a chance to see whether that trust can extend to something considerably more complicated than choosing between two enormous jars of peanut butter. For now, we'll have to wait to learn exactly where the Costco Medicare plans will be available, when they'll launch, and what they'll include.
One thing seems fairly certain, though. We're running out of things Costco doesn't do well.
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