SCAN Health Plan and Costco will roll out insurance products for older adults in the coming years, according to an Aug. 18 news release.
The Wall Street Journal reported that the companies would begin by selling jointly branded Medicare Advantage products in two states, as well as a Medicare supplement in a third state. While the geography was not specified, executives said the markets would cover roughly 5 million Medicare enrollees. According to the news release, SCAN Health Plan has almost 460,000 members spanning California, Arizona, Nevada, Texas, New Mexico and Washington. Across all SCAN entities, the organization covers about 500,000 members and patients.
SCAN CEO Sachin Jain, MD, told the Journal that Medicare Advantage plans would integrate with Costco’s current health-related offerings. The news release said offerings could include a refreshed pharmacy experience, Medflex over-the-counter benefits, vision and audiology.
Due to federal rules, the plans will not tack on a Costco membership. Plans will be sold in Costco stores, online and through insurance agents.
Costco’s collaboration with SCAN marks the retailer’s first comprehensive partnership with a Medicare plan. The update builds upon Costco and SCAN’s rewards program, offering incentives for members partaking in healthy habits. SCAN members have also been able to use certain benefits at some Costco locations, and the companies have partnered on MA education.
“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,” Dr. Jain said.