Costco is expanding further into healthcare through a partnership with nonprofit insurer SCAN Health Plan to develop co-branded Medicare Advantage plans in two states and a Medicare supplement plan in a third, in a limited pilot aimed at roughly 5 million Medicare-eligible enrollees. The initiative would link insurance products to Costco's existing pharmacy, optical and hearing center footprint, while distribution is planned through online platforms, insurance-licensed brokers and participating Costco warehouses. Enrollees would not need a paid Costco membership, although the plans are designed to encourage use of Costco services. The move targets the more than $500 billion Medicare Advantage market and builds on Costco's broader healthcare push, which already includes discounted prescription drug pricing through its Costco Member Prescription Program and virtual doctor visits through telehealth provider Sesame. The companies said additional features under development could include a redesigned pharmacy experience, Medflex over-the-counter pharmacy benefits, vision coverage and hearing or audiology benefits. Costco CEO Ron Vachris said the company is extending its value-focused model into health services, while SCAN Group CEO Dr. Sachin H. Jain said older adults want coverage that is easier to navigate and tied to trusted organizations. SCAN currently serves almost 460,000 members across 33 counties in California, Arizona, Nevada, Texas, New Mexico and Washington. The rollout remains subject to approval from the Centers for Medicare & Medicaid Services, and pricing, launch timing and financial impact have not been disclosed. Costco shares rose 0.82% on Tuesday to close at $961.35, with modest gains in after-hours trading.