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Costco partners with SCAN Group to launch Costco-branded Medicare plans
The retailer plans Medicare Advantage in two states and a Medicare supplement plan in a third, subject to Medicare agency approval.
Costco Wholesale Corp. is entering the Medicare market through a partnership with nonprofit insurer SCAN Group, with plans to sell Costco-branded coverage for older adults through Costco retail locations and standard insurance channels. The companies said the effort will begin with Medicare Advantage products in two states and a Medicare supplement plan in a third, pending regulatory approval from the Medicare agency, according to a report from the Wall Street Journal.
The three markets together cover around five million Medicare enrollees, the report said. Under the arrangement, Costco will market the health insurance products, and the companies said covered services could include prescription drug access, Medflex over-the-counter benefits, vision care, and audiology, among other offerings.
The companies declined to name the target states or timing, citing restrictions on disclosure while plans are awaiting agency approval. Federal rules also prohibit bundling a Costco membership with the health plans.
SCAN Group CEO Dr. Sachin H. Jain said the plans are intended to be simple to use and designed to help seniors access their benefits, while Costco CEO Ron Vachris described the partnership as an extension of Costco's value proposition. Richard Stephens, senior vice president for pharmacy at Costco, characterized the Medicare effort as a pilot to learn from the rollout and refine the product for members.