Instacart is partnering with Alignment Healthcare to launch a co-branded Medicare Advantage plan in 13 California and Nevada counties, pending regulatory approval. This initiative will provide 3.9 million Medicare-eligible individuals with quarterly grocery allowances, Instacart+ memberships, and access to Alignment Health’s virtual storefront. The collaboration represents Instacart’s entry into healthcare, following similar moves by other grocery companies. The co-branded plans are set to debut in early 2023 and may potentially expand to more markets in the future.
Instacart is teaming up with Alignment Healthcare to introduce a co-branded Medicare Advantage plan in 13 counties spanning California and Nevada in the coming year. This groundbreaking partnership, pending regulatory approvals, aims to serve approximately 3.9 million Medicare-eligible individuals. The plan will provide a quarterly grocery allowance ranging from $50 to $100 through Instacart, along with complimentary Instacart+ memberships offering free delivery on eligible orders. Additionally, it will offer technical support for account setup and order placement. Members will have access to Alignment Health’s novel “virtual storefront” on the Instacart platform, enabling them to shop for recommended products.
According to Dawn Maroney, President of Markets at Alignment and CEO of Alignment Health Plan, this collaboration has been in development for some time. She emphasizes the importance of nutrition as a crucial component of healthcare, stating, “We think food is the other medicine that is absolutely needed.” In California, the co-branded Medicare Advantage plans will be available in multiple counties, including Los Angeles, Marin, Orange, San Diego, San Francisco, Santa Clara, and Stanislaus, starting from January 1. In Nevada, the plan will be accessible in Carson City and several counties: Clark, Douglas, Nye, Storey, and Washoe.
Alignment Healthcare operates in four more states, and Dawn Maroney expressed her desire to expand the Instacart plans to all markets in the future. These new Medicare Advantage plans are part of Instacart’s recent foray into the healthcare sector, following the launch of initiatives last year that enable healthcare providers to order food and medical supplies for patients through their platform. They also offer prescription food delivery services for Medicaid managed care plans.
In recent months, several other grocery companies have ventured into co-branded Medicare Advantage plans as well. Intermountain’s Select Health and Kroger Health are introducing MA plans in four states, while Blue Cross Blue Shield of Michigan and Meijer are planning to launch their own MA plan next year.