Costco Is Expanding Into The Medicare Insurance Business

Costco is known for bulk groceries, cheap hot dogs, and deals on everything from tires to televisions. Now, the retail giant is getting into the Medicare biz.

Costco has announced a partnership with nonprofit insurer SCAN Group to launch Costco-branded Medicare products, including Medicare Advantage plans.

The move marks Costco’s first entry into the health insurance business.

The new partnership will initially launch as a limited pilot program.

The goal is to connect Medicare coverage with services Costco members already use, including the retailer’s pharmacy, hearing, and optical centers.

Medicare Advantage plans are offered by private insurance companies and provide Medicare-covered benefits through a specific plan.

Depending on the plan, they can also include additional benefits beyond traditional Medicare.

For Costco members, the partnership could eventually make shopping for health coverage feel a little more familiar.

Instead of simply picking up prescriptions or getting a new pair of glasses at Costco, members could potentially have more of their healthcare needs connected through the retailer.

The initial rollout will be limited, so Costco shoppers shouldn’t expect to walk into their local warehouse and sign up for a Costco Medicare plan just yet.

However, if the pilot proves successful, this could be the beginning of a much bigger role for Costco in the healthcare and insurance industries.