Costco is selling Medicare plans but don’t buy on brand alone

Live updates

1. 22d ago

   Costco enters Medicare market through partnership with SCAN

   Costco is now offering Medicare plans, including Medicare Advantage options, as part of an expanded partnership with SCAN. The retailer is leveraging its membership model to enter a 500 billion dollar market, targeting a demographic that represents approximately 6% of its paid member base. While the brand is well-known for gas and vacations, analysts warn consumers not to choose these health plans based on brand loyalty alone. The move allows Costco to diversify its service offerings to an aging population of members.

   Why it matters

   Costco has historically expanded its member services to include travel and fuel. This entry into health insurance occurs as some major industry players are exiting the Medicare space.

   What is confirmed

   • Costco is selling Medicare plans.
   • Costco partnered with SCAN to offer these plans.
   • The offering includes Medicare Advantage plans.

   Still unconfirmed

   • The Medicare pilot targets a pool equal to 6% of Costco's paid member base.
   • The Medicare market is valued at 500 billion dollars.

   What to watch next

   • Details on plan pricing and member-specific benefits
   • Expansion of the pilot program to all warehouse locations
   • Financial impact of the SCAN partnership on Costco quarterly earnings
   Sources used for this update (7)

   1. WSJ — Exclusive | Costco Sells Vacations, Gas and, Soon, Medicare Plans
   2. USA Today — Costco's latest deal: Get Medicare with that $1.50 hot dog and soda
   3. thestreet.com — Costco is selling Medicare plans but don’t buy on brand alone
   4. Yahoo Finance — Should you buy a Medicare Advantage plan from Costco? What you'll want to know.
   5. Fierce Healthcare — A look inside the expanded partnership between SCAN and Costco
   6. Barchart.com — The Biggest Players in a $500 Billion Market Are Exiting. Here’s Why Costco Just Entered.
   7. TechStock² — Costco Stock’s Medicare Pilot Targets a Pool Equal to 6% of Its Paid Member Base
   confidence 90%