Costco enters first partnership with Medicare plan
Costco Wholesale Corp. is teaming up with a not-for-profit Medicare provider.
The membership warehouse club giant is collaborating with Scan Health Plan, marking its first comprehensive partnership with a Medicare plan. Scan Health, which offers not-for-profit Medicare Advantage plans and serves nearly 460,000 members across 33 counties in California, Arizona, Nevada, Texas, New Mexico and Washington, and Costco will launch a suite of senior-focused insurance products over the coming years.
Offerings may include, pending regulatory review and approval, a re-invented pharmacy experience, Medflex over the counter (OTC) benefits, vision, audiology and other Medicare services. Costco has not specified exactly when it may begin providing joint Medicare services with Scan Health.
"For more than 40 years, Costco has consistently listened to our members and earned their trust delivering consistent value on essential goods and expanding our health service offerings," said Ron Vachris, CEO of Costco. “Selecting Scan as our partner to deliver a better healthcare experience for seniors, is an extension of that commitment. We have developed a shared understanding of what matters most to the seniors we serve. Deepening our partnership allows us to build on that foundation and create value for our members.”
In late 2023, Costco entered into a partnership with virtual healthcare platform Sesame to offer exclusive, low pricing from Sesame’s marketplace to Costco members for services that include virtual primary care, health checkups (including lab work) and virtual mental health therapy.
Sesame’s marketplace includes primary care doctors and nurse practitioners, more than 40 health specialties, labs and imaging centers, and offers both virtual and in-person care. In April 2024, Costco expanded the partnership to include a weight-loss program for members.
[READ MORE: Costco launches weight-loss program for members]
Retailers including Walmart and Amazon offer Medicare health services, while CVS Health designs and administers Medicare plans via its Aetna healthcare subsidiary.
"For the millions of older adults who rely on Medicare Advantage, the future of the program depends on strong partnerships that make healthcare more accessible, more connected and more seamlessly integrated into everyday life," said Dr. Sachin H. Jain, CEO of Scan Group and Scan Health Plan. "Older adults want healthcare that is easier to navigate, more responsive to their needs and rooted in organizations they trust. Our expanded partnership with Costco will give us a strong foundation to explore new ways to help people stay healthy and independent while delivering the quality, value, and service both of our organizations are known for."
Costco currently operates 933 warehouses, including 641 in the United States and Puerto Rico, 115 in Canada, 43 in Mexico, 37 in Japan, 29 in the United Kingdom, 20 in Korea, 15 in Australia, 14 in Taiwan, seven in China, five in Spain, three in France, two in Sweden, and one each in Iceland and New Zealand. Costco also operates e-commerce sites in the U.S., Canada, the U.K., Mexico, Korea, Taiwan, Japan, Australia and China.
