Costco partners with SCAN Group to offer Medicare Advantage plans to members
The warehouse club will offer Medicare Advantage and supplement plans via a not-for-profit partner, subject to regulatory approval, as it expands into healthcare services.
Costco has announced a partnership with SCAN Group to provide Medicare Advantage plans to its club members, marking a significant expansion into the healthcare insurance sector. The initiative is currently pending regulatory approval and will initially be limited to select markets. According to a report by The Wall Street Journal, the rollout will begin with Medicare Advantage plans available in two states and a Medicare supplement plan in one.
SCAN Group is a not-for-profit plan provider that operates in approximately half a dozen states. Dr. Sachin H. Jain, CEO of SCAN Group, stated in a release that older adults seek healthcare that is easier to navigate, more responsive to their needs, and rooted in organisations they trust. The collaboration aims to leverage Costco’s reputation as a trusted retailer to simplify the process of selecting health coverage for its ageing customer base.
While the announcement has generated interest, experts caution that the convenience of purchasing through a warehouse club does not guarantee the best financial deal. Danielle Kunkle Roberts, author of "10 Costly Medicare Mistakes You Can't Afford to Make," described the move as interesting but noted that Medicare Advantage plans are federally regulated insurance products. Consequently, the "warehouse club pricing" model does not apply to these policies, and shoppers must still evaluate Star Ratings, confirm doctor network availability, and compare total costs before enrolling.
Medicare is government-sponsored healthcare insurance generally available to US citizens aged 65 and over. Original Medicare offers hospital and medical insurance, while Medicare Advantage, or Part C, often combines these with prescription drug coverage and may include additional benefits and out-of-pocket limits. Medicare supplement plans, such as Plan G or K, are optional and help cover out-of-pocket costs not covered by Original Medicare.
The move by Costco has raised questions about whether other major retailers will follow suit. Currently, other major warehouse clubs such as BJ's and Sam's Club have not announced similar plans. Amazon, which continues to expand its Amazon One Medical service with pharmacy and on-demand medical care, is considered a likely candidate to enter the space, although the company has not signalled any specific plans to do so.
Consumers are advised to use the Medicare Plan comparison tool to evaluate available options in their area. The National Council on Aging suggests asking key questions, such as whether current prescriptions will be covered, before making a decision. As the rollout is pending regulatory approval, specific timelines and the exact states involved have not yet been confirmed.
