Costco Wholesale and SCAN Health Plan have expanded their strategic partnership to develop a suite of senior-focused insurance products aimed at improving value, accessibility and the overall Medicare experience for older adults. The expanded alliance represents Costco’s first comprehensive partnership with a Medicare plan.
The companies plan to introduce new offerings over the coming years that combine SCAN’s experience serving older adults with Costco’s consumer platform and health services capabilities.
Potential offerings, subject to regulatory review and approval, include a redesigned pharmacy experience, Medflex over-the-counter benefits, vision services, audiology and additional products focused on older adults.
The partnership is intended to make health benefits easier for seniors to use while integrating healthcare more closely with services they already access in their everyday lives.
SCAN Health Plan is one of the largest not-for-profit Medicare Advantage plans in the U.S. and serves nearly 460,000 members across 33 counties in California, Arizona, Nevada, Texas, New Mexico and Washington.
Across SCAN Group’s broader healthcare businesses, the organization serves approximately half a million members and patients.
Costco brings a large consumer platform and more than four decades of experience serving its membership base.
The retailer has increasingly expanded its health-related services, creating an opportunity to connect those capabilities with SCAN’s Medicare expertise.
The companies said their expanded relationship is built around a shared understanding of what older adults want from healthcare, including easier navigation, greater convenience, strong value and services delivered through organizations they already trust.
The partnership could also give SCAN additional consumer touchpoints through Costco as it looks for new ways to improve engagement with Medicare Advantage members.
For Costco, the agreement represents a deeper move into healthcare partnerships targeted specifically at seniors.
The companies plan to use their complementary capabilities to explore products that address several common healthcare expenses and services used by Medicare beneficiaries.
Pharmacy, vision, audiology and over-the-counter benefits are among the areas being considered as the partnership develops.
SCAN has been particularly focused on improving what it sees as a fragmented healthcare experience for older adults.
Last year, the organization launched its “Health Insurance is Broken Campaign,” drawing attention to difficulties seniors can face when attempting to access care and navigate healthcare services.
The Costco partnership is intended to translate that broader effort into practical products and experiences designed around older adults.
SCAN Group also operates several healthcare organizations serving seniors with different needs.
Its Independence at Home program provides services and support to older adults and caregivers.
Since 2020, SCAN has also launched Healthcare in Action, Welcome Health and myPlace Health, medical groups focused on different populations and healthcare needs among older adults.
The expanded Costco relationship adds another avenue through which SCAN can pursue its broader strategy of helping seniors remain healthy and independent.
For both organizations, the partnership centers on connecting insurance benefits, healthcare services and everyday consumer experiences more seamlessly rather than requiring seniors to navigate multiple disconnected systems.
KEY QUOTES:
“For the millions of older adults who rely on Medicare Advantage, the future of the program depends on strong partnerships that make healthcare more accessible, more connected and more seamlessly integrated into everyday life.”
“Older adults want healthcare that is easier to navigate, more responsive to their needs and rooted in organizations they trust. 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. Sachin H. Jain, CEO of SCAN Group and SCAN Health Plan
“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.”
“Selecting SCAN as our partner to deliver a better healthcare experience for seniors, is an extension of that commitment. We have developed a shared understanding of what matters most to the seniors we serve. Deepening our partnership allows us to build on that foundation and create value for our Members.”
Ron Vachris, CEO of Costco
