Costco Files for Medicare Plan Approval in Multi-Year Push

Costco is seeking regulatory approval to roll out a Medicare plan and other senior-focused insurance products over the coming years, the retailer said. The company partnered with SCAN Health Plan, a nonprofit that covers older adults, to develop offerings that could include pharmacy benefits, over-the-counter allowances, vision and audiology coverage. The launch depends on approval from the Medicare agency, SCAN Health said in a press release Tuesday.

The Wall Street Journal reported Tuesday that Costco and SCAN Group plan to start with Medicare Advantage products in two states and a Medicare supplement plan in a third. The companies would not disclose the locations or a timeline because the approval is pending, the Journal said.

Costco CEO Ron Vachris said the partnership extends the retailer's push to deliver value on essential goods. “We have developed a shared understanding of what matters most to the seniors we serve,” Vachris said in the release. “Deepening our partnership allows us to build on that foundation and create value for our members.”\ n Costco reported in May that paid memberships grew 4.1% to 82.9 million during the quarter ended May 10. That base gives the retailer a ready audience for new healthcare products.