Costco pursues regulatory approval to start offering Medicare products in coming years

Costco is planning to offer a limited rollout of Medicare plans, partnering with SCAN Group, a nonprofit insurer. 

Executives with the two companies said the plan targets three target markets, which include around 5 million Medicare enrollees, the Wall Street Journal reported. 

The companies declined to say the locations and timing of the rollout, citing regulatory restrictions on disclosure pending approval by the Medicare agency. The initial rollout of the jointly named Medicare Advantage products would start in two states, with customers in a third state being offered a Medicare supplement. 

Federal law prohibits Medicare products being offered with Costco memberships, so the products will be sold in Costco stores, as well as through traditional channels such as insurance agents and websites.