After the Costco-SCAN Medicare plans gain regulatory approval, Jain said he expects SCAN sales representatives will be able to reach potential customers at Costco retail locations. The company also maintains a sales team and partners with insurance brokers to market plans.

Large Medicare Advantage insurers have faced scrutiny over the use of “prior authorization,” a common industry tool to vet requests before allowing doctors or health facilities to bill for medical services.

Unlike traditional Medicare, which allows beneficiaries to visit any participating doctor or hospital, Medicare Advantage plans can limit networks of hospitals and doctors.

Jain said older adults want health care that is easy to navigate and responds to health needs. Because Costco warehouses typically have pharmacies and sell eyeglasses and hearing aids, those could be another retail option for older adults on a private Medicare plan.

Jain said he wants to bring Costco’s reputation for price transparency and ease of use to Medicare enrollees.

“Many (Medicare Advantage) plans have rich supplemental benefits, but also have mechanisms in place that make it hard for older adults to actually use those benefits. They create non-transparent pricing (and) non-transparent hurdles,” Jain said. “And I think our goal is to create a plan that is simple and easy to use, where everyone can easily access benefits.” 

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