Both retail giants have partnered with SCAN Health, a nonprofit health insurer

Walmart is partnering with SCAN Health to sell Medicare Advantage plans to older adults, according to Bloomberg. (Photo by Joe Raedle/Getty Images)

Walmart will sell Medicare Advantage plans as part of a new partnership with SCAN Health, a nonprofit health insurer that recently partnered with Costco Wholesale on a similar initiative.

The co-branded plans will be offered to more than 2 million Medicare enrollees in two unnamed states, according to SCAN Health. They may also include benefits related to pharmacy, vision, food and over-the-counter products. The plans will be available for selection during the Medicare Advantage open-enrollment period, which begins Oct. 15.

"What makes this collaboration unique is Walmart's role in customers' everyday lives," said Pravene Nath, Walmart's group director for consumer health and data solutions. "Because customers regularly turn to Walmart for groceries and other everyday essentials, we have an opportunity for those who choose to participate to use insights from their shopping experiences to make nutrition guidance more relevant and actionable."

Bloomberg first reported the partnership.

SCAN Health made a similar announcement with Costco (COST) last month, saying the companies plan to sell jointly branded Medicare Advantage and Medicare supplement plans.

"As a longtime Costco customer, I know that if I walk into a Costco store, I'm just going to buy the item because they've done the work for me to make sure that it's a high-quality, high-value product," Sachin Jain, SCAN's president and CEO, told MarketWatch at the time. "I would say that that's what seniors are increasingly looking for in their Medicare experience."

Several health insurers have stopped selling or plan to stop selling Medicare Advantage plans, citing the costs of doing so. Medicare Advantage plans make up more than half of all Medicare coverage.

-Jaimy Lee