Costco is partnering with a nonprofit to launch its own brand of Medicare.

The Issaquah, Washington-based warehouse chain has agreed to work with a California-based nonprofit insurer called SCAN to offer a Medicare Advantage plan that includes a suite of senior-focused insurance products.

For Costco, the move means breaking into a Medicare Advantage industry worth more than $500 billion, in which private insurers offer health plans approved by Medicare. And for SCAN, a midsized organization with around half a million members, partnering with Costco means access to millions of Medicare enrollees who use Costco.

In a SCAN news release on Tuesday, the nonprofit said the products will integrate with Costco’s current prescription, vision, hearing and over-the-counter offerings, which attract seniors.

“Older adults want healthcare that is easier to navigate, more responsive to their needs and rooted in organizations they trust,” SCAN CEO Sachin H. Jain said in the news release. “Our expanded partnership with Costco will give us a strong foundation to explore new ways to help people stay healthy and independent while delivering the quality, value, and service both of our organizations are known for.”

According to The Wall Street Journal, SCAN and Costco said they would start selling their jointly named Medicare Advantage products in two states and a Medicare supplement in a third. Combined, the locations will give them access to around 5 million Medicare enrollees, according to The Journal.

The companies didn’t say when or where the plans would officially roll out.

SCAN offers Medicare Advantage plans in six states.

In the news release Tuesday, Costco CEO Ron Vachris said the company has developed a shared understanding with SCAN of what matters most to their senior customers.

“For more than 40 years, Costco has consistently listened to our Members and earned their trust delivering consistent value on essential goods and expanding our health service offerings,” Vachris said. “Selecting SCAN as our partner to deliver a better healthcare experience for seniors, is an extension of that commitment.”

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