Costco is getting into the Medicare business.
The big-box membership retail giant announced plans for a limited rollout of Medicare plans, including Medicare Advantage, The Wall Street Journal reported.
Costco will work with SCAN Health Plan, one of the nation’s largest nonprofit Medicare Advantage plans that focus on senior health care, according to Fox News.
Costco and SCAN will launch a “suite of senior-focused” insurance products over the next few years, the news outlet reported.
In some markets, the retailer’s insurance products will integrate pharmacy, vision and hearing benefits. https://t.co/tLegWsttwW
— The Wall Street Journal (@WSJ) August 18, 2026
The companies said they will sell their jointly named Medicare Advantage products in two states and a Medicare supplement in a third, The Wall Street Journal reported.
According to the newspaper, executives from the two companies said the target markets include approximately 5 million Medicare enrollees but did not provide specifics, citing regulatory limits on disclosure until Medicare formally approves the plans.
SCAN, based in Long Beach, California, currently serves approximately 460,000 members across 33 counties in Arizona, California, New Mexico, Nevada, Texas and Washington, according to the newspaper.
Sachin Jain, chief executive of SCAN, said the plans will integrate with Costco’s offerings across prescription drugs, vision, over-the-counter medications and hearing products.
“We are trying to create something that’s incredibly simple for people to use that will enable them to seamlessly access their benefits,” Jain told The Wall Street Journal.
The plans will be sold at Costco outlets and also through insurance agents and websites, according to the newspaper.
Costco CEO Ron Vachris said that the new partnership will help the company provide its members with more value, Fox News reported.
“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,” Vachris said in a statement.
Richard Stephens, senior vice president for pharmacy at Costco, said the retailer sees the new Medicare effort as a pilot program.
“We plan to learn a lot from it, and we plan to make sure that we have the right product for our members,” Stephens told The Wall Street Journal.
The two companies declined to disclose financial details of their partnership.
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