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Medicare Advantage is a private health insurance product for Americans eligible for federal Medicare coverage, with private insurers competing on benefit design and cost-sharing within a government payment framework.
The enrollment economics favor a distributor who already holds a trusted, ongoing relationship with older consumers.
Costco, the membership retail giant, is now targeting Medicare Advantage as a new kind of product for the company. Annual membership fees sit at the foundation of Costco's model.
That recurring relationship is the distribution asset that makes the expansion plausible. The move pushes Costco into health insurance territory it has not previously occupied.
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