The pilot program will launch in three states, offering Costco-branded Medicare plans and a supplement product. While the company has not disclosed specific locations, the targeted markets include approximately 5 million Medicare enrollees. Federal regulations prohibit membership-based discounts on these insurance products, so the plans will be sold through agents and websites located within Costco warehouses.
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Costco Enters Medicare Market Through Strategic Partnership
Costco is expanding its retail footprint into the $600 billion Medicare sector by partnering with nonprofit insurer SCAN Group. The initiative, currently awaiting federal regulatory approval, seeks to integrate health insurance plans directly into the warehouse experience, positioning healthcare alongside the company's existing pharmacy, vision, and hearing services.
This move marks another diversification effort for the retailer, which already manages travel packages and standalone gas stations. SCAN CEO Sachin Jain emphasized that the plans aim to simplify healthcare navigation for members, while Richard Stephens, Costco’s senior vice president for pharmacy, characterized the rollout as a learning phase to evaluate potential future expansion.
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