Costco is making one of its most significant forays into the healthcare space.
The retail giant recently announced that it has partnered with SCAN Health Plan, one of the nation’s largest nonprofit Medicare Advantage insurers focused on senior care. The goal of the partnership is to roll out a suite of senior-oriented insurance products over the next several years.
Although the specific offerings included in the suite are dependent on regulatory approval, the collaboration seeks to provide a revamped pharmacy experience, vision, and audiology coverage, along with Medflex, a prepaid benefit card for over-the-counter pharmacy purchases.
The plans in question will eventually be available for purchase within Costco stores and through insurance agents, as well as online, though neither company has fixed a date for the rollout.
Where the service is heading
While SCAN currently operates across 33 counties in California, Arizona, Nevada, Texas, New Mexico, and Washington, the company is looking to address a wider issue, specifically the fragmented nature of the senior healthcare system.
“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,” said Dr. Sachin Jain, CEO of SCAN Group and SCAN Health Plan.
“Older adults want healthcare that is easier to navigate, more responsive to their needs, and rooted in organizations they trust,” Jain added.
Costco CEO Ron Vachris framed the partnership as an extension of what the warehouse chain already does. “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,” Vachris said.
“Selecting SCAN as our partner to deliver a better healthcare experience for seniors is an extension of that commitment,” the CEO concluded.
In the broader sense of things, this move builds on Costco’s existing footprint in the health space, where it already runs pharmacies, optical departments, and hearing aid centers within its warehouses.
Sources: SCAN, Fox Business, The Wall Street Journal