You can book a vacation, get new glasses, pick up a prescription, buy groceries for the week, and lease a new car after indulging in Costco’s famous $1.50 hot dog and soda combo.
Costco really sells everything you can think of — giant televisions, recliners for two, swingsets, furniture for every room inside and out, lobsters and steaks and bricks of cheese the size of Rhode Island.
Soon, you really will be able to get everything and anything at Costco Wholesale, even a Medicare plan. The discount retailer with the cult-like following partnered with nonprofit Medicare plan provider SCAN Group to offer the coverage, according to a statement Tuesday, Aug. 18.
5 Million Potential Buyers in Pilot Rollout
The two companies are selling jointly branded Medicare Advantage products in two unnamed states, as well as a Medicare supplement plan in a third state, also not named. The markets would cover roughly 5 million Medicare enrollees.
“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 said on LinkedIn and in a statement. “Our expanded partnership with Costco will give us a strong foundation to explore new ways to help people stay healthy and independent.”
He added that many health plans are “retreating from Medicare…” but SCAN is different and is “leaning in with ambition, discipline…”
Costco’s Reach
The membership-only warehouse club was founded by Jim Sinegal and Jeff Brotman on Sept. 15, 1983, in Seattle, Washington. Today there 626 Costco warehouses in every state in the country except Rhode Island, West Virginia, and Wyoming.
“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,” Ron Vachris, CEO of Costco, said on Facebook and in a statement from SCAN.
“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,” Vachris said.
Vachris has been CEO and president since 2024 and has worked for the company in many leadership and managerial roles in several departments. He began working for Price Club, a predecessor of Costco, as a part-time forklift driver in 1982. Price Club merged with Costco Wholesale in 1993 and rebranded as Costco Wholesale, dropping the Price Club name, in 1997.
Aside from discounted bulk groceries, electronics, appliances, tirers, office supplies, and clothing, Costco offers services like tire service centers, pharmacy, optical center, gas station, bakery, and food court. Members also get access to Costco Travel vacation packages, auto buying programs, and home installation services.
Costco’s foothold in the medical space includes hearing aids and eye exams, prescription glasses and discounted medication, and pet healthcare products. The retailer has a legion of superfans on Reddit, Facebook, Discord and across the internet on independent websites that promise insider information.
Its magazine, The Costco Connection, has the third highest circulation in the country, roughly 13 million. (The number one and two slots goes to AARP The Magazine with 22.2 million, and AARP Bulletin with 22.1 million.) Its iconic hot dog and soda combo for $1.50 has been the same price since it was introduced in 1984. (Adjusted for inflation, the combo would cost over $4.50 today.)
Costco and SCAN Partnership
Due to Federal laws, no Costco membership is required to check out the Medicare offerings. A free membership won’t be bundled as an incentive, either, also due to federal regulations. The plans will be sold in Costco stores, online and through insurance agents.
Headquartered in Southern California, SCAN has spent nearly 50 years selling Medicare Advantage plans in Arizona, Nevada, New Mexico, Texas and Washington state.
“Now, we have an opportunity to pair our deep Medicare expertise with one of the most trusted consumer brands in America and explore whether choosing and using Medicare coverage can become simpler, more intuitive and more connected to people’s everyday lives,” Dr. Jain said
Nationally, Medicare is a more than $600 billion business for insurers, but the two companies said they would start by selling their jointly named Medicare Advantage products in two states, and a Medicare supplement in a third.
“Costco has built something exceedingly rare: trust at scale,” Dr. Jain said. “Its members believe that if Costco puts its name on something, it has been carefully vetted for quality and value. That trust was earned one decision and one member experience at a time.”
