As if hot tubs, gold bars and a $1.50 hot dog and soda combo weren't enough, some Costco bargain hunters will soon get to add another item to their shopping list − Medicare plans.
The warehouse retailer will team with nonprofit insurer SCAN Group to offer private Medicare plans to customers in a limited number of states. Costco and SCAN will offer jointly branded Medicare Advantage plans in two states and a Medicare supplemental plan in a third state.
In a joint news release, SCAN and Costco said the partnership would focus on insurance products for older adults. Pending regulatory approval, those insurance products would include pharmacy, vision, hearing and Medflex over-the-counter benefits.
SCAN Group and SCAN Health Plan CEO Sachin H. Jain
told USA TODAY that he pursued the partnership, in part, because of Costco's reputation with seniors.
"We're trying to create a win-win − something that was going to be good for seniors, good for SCAN and good for Costco," Jain said.
The arrangement was first reported by The Wall Street Journal.
Jain said he could not share details about the benefits, locations or timing of the jointly branded Medicare products due to regulatory restrictions. Medicare Advantage plans must be vetted by the Centers for Medicare & Medicaid Services and by states in which the plans are sold.
SCAN sells insurance products in Arizona, California, Nevada, New Mexico, Texas and Washington state. The Long Beach, California-based insurer has about 460,000 Medicare enrollees.
Medicare is the federal health program for adults 65 and older and some with disabilities. During open enrollment from Oct. 15 through Dec. 7, beneficiaries can join, switch or drop a plan for the upcoming year. Slightly more than half of Medicare's 64.2 million beneficiaries were enrolled in a privately administered Medicare Advantage plan as of 2026.
After the Costco-SCAN Medicare plans gain regulatory approval, Jain said he expects they SCAN sales representatives will be able to reach potential customers at Costco retail locations. The company also maintains a sales team and partners with insurance brokers to market plans.
Large Medicare Advantage insurers have faced scrutiny over the use of "prior authorization," a common industry tool to vet requests before allowing doctors or health facilities to bill for medical services.
Unlike traditional Medicare, which allows beneficiaries to visit any participating doctor or hospital, Medicare Advantage plans can limit networks of hospitals and doctors.
Jain said older adults want health care that is easy to navigate and responds to health needs. Because Costco warehouses typically have pharmacies and sell eyeglasses and hearing aids, those could be another retail option for older adults on a private Medicare plan.
Jain said he wants to bring Costco's reputation for price transparency and ease of use to Medicare enrollees.
"Many (Medicare Advantage) plans have rich supplemental benefits, but also have mechanisms in place that make it hard for older adults to actually use those benefits. They create non-transparent pricing (and) non-transparent hurdles," Jain said. "And I think our goal is to create a plan that is simple and easy to use, where everyone can easily access benefits."
This article originally appeared on USA TODAY: Costco's latest deal: Get Medicare with that $1.50 hot dog and soda
