Costco Wholesale Corp. is preparing to expand further into healthcare through a new partnership with SCAN Health Plan that could bring Medicare insurance products to certain Costco members.
The warehouse retailer and SCAN, a nonprofit Medicare Advantage provider focused on senior healthcare, announced plans to develop a suite of products aimed at older adults over the coming years.
Pending regulatory approval, the offerings could include a redesigned pharmacy experience, Medflex over-the-counter pharmacy benefits, vision coverage and hearing or audiology benefits. The plans are expected to be offered through Costco locations, insurance agents and online channels.
Neither company has announced a firm launch date, and the rollout is still dependent on regulatory review.
SCAN currently operates across 33 counties in California, Arizona, Nevada, Texas, New Mexico and Washington. The partnership is intended to make healthcare services easier for Medicare Advantage members to access while integrating them more closely with services that are already available through Costco.
SCAN Group and SCAN Health Plan CEO Dr. Sachin Jain said older adults want healthcare that is simpler to navigate and provided through organizations they trust.
Costco CEO Ron Vachris described the partnership as a continuation of the retailer's long-standing strategy of offering members value across essential products and an expanding range of health services.
Costco Stock Climbs Following Latest Expansion News
Costco stock ended Tuesday's session at $961.35 after gaining 0.82%, or $7.85, from its previous close of $953.50.
COST shares experienced some volatility during the session. The stock briefly fell to around $956 early in the day before rallying above $970. Shares later gave back part of those gains heading into the close.
Costco stock price (Source: Google Finance)
The positive momentum continued after hours, with Costco stock trading around $962.83, up another 0.15% from Tuesday's closing price.
For now, the near-term financial impact remains uncertain. The proposed Medicare products still require regulatory approval, and the companies have yet to provide details on launch timing, pricing or the potential contribution to Costco's revenue.
