The Kirkland Signature Care Plan? Costco Prepares Move Into Medicare Advantage

Costco is preparing to bring its signature bulk savings to the healthcare industry through a proposed partnership with SCAN Health Plan (SCAN). While the co-branded Medicare Advantage and Medigap options are still awaiting official approval from the Centers for Medicare & Medicaid Services (CMS), the plan signals a major shift in how seniors might soon shop for coverage. “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,” said Ron Vachris, CEO of Costco, in a press release from SCAN. Recent data shows that 63% of Costco customers are Gen X (born 1965-1981) or baby boomers (born 1946-1964), making senior health services a natural extension of their current membership. This expands on Costco’s recent healthcare push, which includes discounted prescription drug pricing programs (Costco Member Prescription Program) and virtual doctor visits through Sesame.Here is what we know so far about the potential rollout.What we know now about MA and Medigap at CostcoCostco announced a strategic partnership with SCAN Health Plan, a major nonprofit Medicare insurer, to launch co-branded Medicare Advantage and Medigap (Medicare Supplement) plans.”Older adults want healthcare that is easier to navigate, more responsive to their needs and rooted in organizations they trust,” SCAN Group CEO Dr. Sachin H. Jain told The Independent. SCAN Group is a mission-driven, not-for-profit organization that serves almost 460,000 members across 33 counties in six states, including California, Arizona, Nevada, Texas, New Mexico and Washington.The initiative aims to bring Costco’s low-cost, high-value retail model into the $500+ billion Medicare Advantage program by leveraging its existing pharmacy, optical and hearing center offerings.Insurance partner: SCAN Group / SCAN Health Plan, a California-based nonprofit Medicare Advantage program serving nearly 500,000 members.Initial scope of the rollout: The rollout will begin as a limited pilot, offering co-branded Medicare Advantage products in two states and a Medicare Supplement (Medigap) plan in a third state, pending federal regulatory approval from CMS. Together, these initial target markets reach an estimated 5 million Medicare-eligible enrollees.Where it will be sold: The insurance products will be offered online, through insurance-licensed brokers and inside participating Costco warehouses. Enrollees do not strictly need a paid Costco membership to sign up, though the plans are designed to incentivize members to utilize Costco services.Be loyal to your needs, not a brandA Costco-branded Medicare plan sounds appealing on paper, but brand loyalty shouldn’t replace a thorough side-by-side comparison of plans. Until official pricing and local network details are released, the smartest move for retirees is to stay informed, review your current drug and doctor coverage and wait to see whether the actual savings live up to the Kirkland name. Thinking About Costco’s Medicare Options? Save on Membership FirstStackSocial is offering Costco membership deals that include bonus digital shop cards.New members can get a Gold Star Membership plus a $20 Digital Shop Card for $65, bringing the effective cost closer to $45.Or choose the Executive Membership with a $40 Digital Shop Card for $130, lowering the effective cost to about $90.Memberships renew automatically each year unless canceled.View DealRelated ContentIs a Medicare Advantage Plan Right for You?Medicare 2027 Projections: Here’s How Much Your Monthly Premiums Are Estimated to RiseYour Medicare Costs Are Set to Soar: What to Expect Over the Next DecadeProjected 2027 IRMAA Brackets and Surcharges for Medicare Part B and D