Costco Wholesale Corp. is installing Medicare Advantage comparison kiosks next to membership services counters in more than 120 warehouses across Arizona, Florida, Texas and Southern California, giving retirees a warehouse-aisle way to sift plans before the Nov. 1 open-enrollment period, according to company materials distributed to store managers this month. The screens do not sell policies on the spot; they route shoppers to licensed brokers Costco contracted after pilot tests in Phoenix showed long lines at seasonal insurance tables.
Why the warehouse aisle
Costco already sells Medicare supplement policies through its affiliate partnerships, but Advantage plans—with their network restrictions and pharmacy tiers—were harder to explain in a checkout lane conversation. Kiosk software built with ConnectureDRX lets shoppers enter zip codes, medications, and preferred hospitals, then compare star ratings and estimated out-of-pocket costs across carriers licensed in their county. Store staff cannot override results; they hand out cards with broker phone numbers when shoppers want to enroll.
CMS expects more than 34 million beneficiaries to be in Medicare Advantage by 2026, with insurers mailing thick comparison packets starting Oct. 1. Costco’s member demographics skew older than the U.S. average; internal slides from the pilot said 62% of kiosk users in Sun Belt clubs already had Costco pharmacy prescriptions, making drug-tier accuracy a selling point.
What retirees should watch
State insurance commissioners remind shoppers that brokers earn commissions that vary by carrier, even when the interface looks neutral. The National Association of Insurance Commissioners advises comparing Medigap and Advantage options with local doctors in mind, not just premium quotes. Costco’s materials say brokers must disclose compensation if asked, mirroring CMS marketing guidelines.
Advocacy group Medicare Rights Center said kiosks can help if they show all plans in a county, not a curated list. Costco representatives said the tool pulls from the same CMS dataset insurers use for plan finder, updated nightly during enrollment. Shoppers still need to verify whether specialists they see at Costco’s in-warehouse hearing and optical partners appear in-network—a detail the kiosk flags but does not guarantee.
Timing and politics
Open enrollment for Medicare Advantage and Part D runs Nov. 1 through Dec. 7 for Jan. 1 coverage. HHS’s weekend drug-pricing announcements may shift premium bids insurers file in October, which means kiosk estimates could change after a shopper’s first visit. Costco plans “enrollment office hours” on weekends in November with brokers wearing badges, separate from the tire center queue.
For households that already treat Costco runs as monthly budgeting rituals, the kiosks fold health planning into a trip for paper towels and propane. They are not a substitute for counseling from State Health Insurance Assistance Programs, which remain free—but for retirees who never answer unknown numbers, a familiar warehouse beats a cold call from a carrier telesales shop.
Costco declined to share commission terms; brokers said the value is foot traffic, not kiosk glamour. If lines stay manageable, the chain may expand to Midwest clubs before year-end.
