By Marc Gilman
Questions? Call (800) 927-9326 or email
Key Takeaways
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Costco is partnering with SCAN Group, a nonprofit Medicare-focused insurer, to launch co-branded Medicare Advantage plans in two states and a Medicare supplement plan in a third.
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The exact states haven’t been disclosed yet. Both companies say regulatory rules tied to CMS approval prevent naming the markets before the plans are officially cleared.
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The target markets cover roughly 5 million Medicare-eligible people combined — a limited pilot, not a national rollout.
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A Costco membership will not get you a discount on the plan itself. Federal rules don’t allow tying insurance pricing to retail membership.
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The plans will integrate Costco’s pharmacy, vision, over-the-counter, food, and hearing offerings — aimed at reducing the friction seniors often run into at the pharmacy counter.
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The plans will be sold in Costco stores and through normal channels — agents and websites — not exclusively behind the membership wall.
What’s Actually Happening
Costco and SCAN Group, a Long Beach, California-based nonprofit insurer with roughly 460,000 members, are launching jointly branded Medicare products. The plan is to start small: Medicare Advantage in two states, plus a Medicare supplement in a third, targeting a combined pool of around 5 million Medicare enrollees. Neither company has disclosed which states or when enrollment opens, citing CMS disclosure rules that apply while approval is pending.
SCAN already operates Medicare Advantage plans in Arizona, Nevada, New Mexico, Texas, and Washington state, with Southern California as its core market — a reasonable guide to where this pilot is likely to start, though nothing has been confirmed publicly.
This is best understood as a pilot, not a full market entry. Costco has described it that way directly, framing the effort as something to learn from before deciding how far to expand it.
Why Costco Is Doing This
Costco has spent the last several years testing ways to make membership more valuable beyond the checkout line — stand-alone gas stations, travel packages, and now insurance. Medicare is a market worth over $600 billion nationally, and Costco’s built-in advantage is the retail relationship it already has with millions of seniors who shop there for prescriptions, over-the-counter items, and food.
The stated goal is integration, not just distribution. According to SCAN’s chief executive, the aim is to make the experience simple enough that members can move seamlessly between their plan and their everyday benefits — prescriptions, vision, hearing, food — rather than treating the insurance plan as a separate product bolted onto the membership.
What’s Different From a Typical Medicare Advantage Plan
The core structure isn’t new — this is still a standard Medicare Advantage plan (and, in the third state, a standard Medicare supplement) underwritten and administered by SCAN, just co-branded with Costco and tied more closely to Costco’s pharmacy and retail benefits. The novelty is the integration layer: closer coordination between the plan and Costco’s pharmacy, vision, hearing, and over-the-counter offerings than a typical MA plan would have with an unaffiliated retailer.
What it isn’t: a membership perk. You won’t get a discount on the plan for being a Costco member, and buying the plan doesn’t require one either — it will be sold in stores, but also through ordinary channels like agents and insurance websites, the same way any other Medicare Advantage plan is sold.
Common Misconceptions Worth Getting Ahead Of
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“My Costco membership gets me a better rate.” It doesn’t — federal rules prohibit tying insurance pricing to retail membership status.
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“This is available everywhere now.” It isn’t. This is a limited pilot in an unnamed handful of states, not a nationwide product.
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“I have to buy it in a Costco store.” You don’t — it will be available through the same agent and website channels as any other Medicare Advantage plan.
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“This changes what Medicare Advantage actually covers.” It doesn’t. The underlying plan structure is standard SCAN Medicare Advantage — the difference is which retail benefits it’s coordinated with, not the coverage itself.
Questions Worth Asking
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If this pilot does launch in your state, does the plan’s provider network and drug formulary actually fit your current doctors and prescriptions — the same question worth asking of any Medicare Advantage plan?
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Does the pharmacy, vision, and hearing integration actually change anything for you, or are those benefits you’d have access to under a different plan anyway?
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If you’re not in one of the pilot states, is there a comparable MA plan available to you now, rather than waiting to see if this expands to your area?
What To Do Next
Whether or not this specific pilot ever reaches your state, it’s a useful moment to check whether your current Medicare coverage still fits your pharmacy, vision, and hearing needs. Let’s review what’s actually available where you live.
Questions? Call (800) 927-9326 or email
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Sources: Anna Wilde Mathews, “Costco Sells Vacations, Gas and, Soon, Medicare Plans,” The Wall Street Journal (August 18, 2026).
This article is for general educational purposes. Details of the Costco/SCAN Medicare partnership — including participating states, effective dates, and plan specifics — were not fully disclosed as of publication and are subject to change pending CMS approval. This is not a recommendation regarding any specific carrier or plan. Consult a licensed advisor for guidance specific to your situation.
