Costco is expanding its insurance offerings beyond travel packages and gasoline to include Medicare, marking a significant move into a $600 billion market.

The warehouse chain will launch Costco-branded Medicare Advantage plans in partnership with SCAN Group, a nonprofit insurer. Initially, the rollout will cover two states for Medicare Advantage and a third state for a Medicare supplement product. Together, the companies aim to reach around five million Medicare enrollees, though exact locations and launch dates remain confidential pending Medicare agency approval.

SCAN Group, headquartered in Long Beach, California, focuses on Medicare and currently serves about 460,000 members. It already offers Medicare Advantage plans in Arizona, Nevada, New Mexico, Texas, and Washington, with Southern California as a core market.

This partnership signals Costco’s intent to become a major player in the Medicare arena, leveraging its existing member base and broad distribution network to offer comprehensive health benefits.