The news: Walmart and health insurer Scan Health Plan are launching a co-branded Medicare Advantage plan in two states. The plan will be available to more than two million Medicare enrollees and sold during the annual enrollment period starting later this fall, with coverage beginning January 1, 2027. Offerings are expected to include pharmacy and vision services, food, and over-the-counter benefits. The plan is still pending regulatory review and approval.

Zooming out: Walmart is reviving a strategy it previously retired. It offered a co-branded Medicare plan and preventive care for adults 65 and older with UnitedHealth Group, but ended the arrangement in 2024 when it abandoned its broader Walmart Health clinic strategy. A handful of other retailers are exploring this path:

• Costco announced a nearly identical arrangement with Scan last month, covering two Medicare Advantage plans and a Medicare supplement across roughly 5 million enrollees.
• Walgreens offers a co-branded plan with Alignment Health, while Kroger sells Medicare Advantage plans with Elevance, Priority Health, and Select Health.

Why it matters: The tie-up offers potential benefits for both sides, even as its scale remains limited to only a few regions for now.

Scan’s pitch mirrors its Costco deal: partner with a retail brand that already sees older shoppers regularly and has an established, trusted reputation built around affordability and value. Walmart’s strong reach among shoppers 65 and older could give the plan credibility as seniors compare often-confusing premiums, copays, and benefits across plans. Scan also hopes members will use Walmart’s recently beefed-up health offerings, which include a digital health network connecting patients to telehealth and discounted wellness products, as well as an AI-powered nutrition hub that provides personalized grocery and recipe recommendations. Using Walmart shopper data to guide members toward preventive care and healthier choices could reduce avoidable medical costs for the plan.

For Walmart specifically, the collaboration could build loyalty among Medicare members by connecting insurance benefits with familiar, convenient places to fill prescriptions and purchase other items. It could also drive repeat visits if Scan members use their OTC and food allowances in Walmart stores.

Implications for retailers and health insurers: Walmart’s previous Medicare plan with UnitedHealth relied on in-network clinicians treating members at Walmart Health clinics. That plan was wound down as Walmart closed the clinics amid high operating costs and reimbursement challenges. The Scan partnership offers a path to healthcare growth without the expense and complexity of owning and managing physical care sites.

Success in this new path would show that retailers can influence health benefits usage and behaviors between doctor visits. Conversely, a weak rollout would suggest that brand recognition and reach cannot compensate for longstanding health insurance shortcomings such as high out-of-pocket costs, narrow provider networks, or limited coverage.

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