Costco to launch Medicare Advantage plans with SCAN Group, pending approval

Costco Wholesale is moving into the health insurance market through a new Medicare Advantage partnership with SCAN Group, a nonprofit insurer. The companies said they intend to begin selling jointly branded plans in two U.S. states, but the rollout is contingent on approval from regulators.

Medicare Advantage is a type of plan that lets beneficiaries receive their Medicare-covered care through a private insurer rather than through Original Medicare. These plans are sold during Medicare’s enrollment periods and must be approved by federal and state authorities before they can be offered.

Under the proposed arrangement, Costco and SCAN Group would market Medicare Advantage plans together under a shared brand. The announcement frames the effort as a consumer-facing expansion for the retailer, while SCAN Group would supply the insurance infrastructure required to operate the plans.

The reporting also indicates that the companies have not yet finalized details for customers in advance of regulatory review. In particular, they did not provide in the cited coverage the specific two states where the plans would first be available, nor did they disclose timing beyond the expectation of starting sales once clearance is granted.

The initiative arrives as Medicare Advantage remains a central battleground in U.S. health care. Insurers compete on networks, premiums, and plan benefits, while retailers and other consumer brands seek distribution advantages by meeting older customers where they already shop and obtain services.

Costco’s involvement, as described in the coverage, is notable because the retailer’s value proposition has traditionally centered on warehouse pricing, private-label offerings, and member services rather than insurance products. A Medicare Advantage partnership would extend Costco’s reach into a category with ongoing enrollment demand, but it also places the company within a heavily regulated segment that can require significant operational and compliance work.

A key uncertainty is what the companies will emphasize once they can begin selling. The coverage did not describe benefit designs, pricing, provider networks, or whether the plans would target specific populations within Medicare, such as seniors who qualify for additional assistance or those with particular care needs.

What to watch next is how regulators respond and what specifics Costco and SCAN Group release if approval is granted. The identity of the two initial states, the plan offerings and pricing structures, and the expected start date for enrollment will likely determine how quickly the partnership translates into measurable customer traction.