Costco enters Medicare Advantage market with first-ever health plan partnership
Aug 18, 2026, 8:35 AM | Updated: 3:25 pm
Customers visit the membership section of a Costco Wholesale store. (Photo: Joe Raedle, Getty Images)
(Photo: Joe Raedle, Getty Images)
Costco is teaming up with SCAN Health Plan to offer Medicare Advantage coverage, giving members access to benefits connected to Costco pharmacies, optical centers, hearing services, and other health-related products.
SCAN Group, one of the nation’s largest nonprofit Medicare Advantage programs, was designed to meet the diverse medical needs of older adults and seniors.
“For the millions of older adults who rely on Medicare Advantage, the future of the program depends on strong partnerships that make healthcare more accessible, more connected and more seamlessly integrated into everyday life,” Dr. Sachin H. Jain, CEO of SCAN Group and SCAN Health Plan, said in a prepared statement. “Older adults want healthcare that is easier to navigate, more responsive to their needs and rooted in organizations they trust. Our expanded partnership with Costco will give us a strong foundation to explore new ways to help people stay healthy and independent while delivering the quality, value, and service both of our organizations are known for.”
The rollout is expected in select states, pending federal approval. The health plans will not be attached to Costco memberships, but will be sold in Costco stores, online, and through insurance agents, offering a suite of senior-focused insurance products. SCAN Health Plan serves nearly 500,000 members in California, Arizona, Nevada, Texas, New Mexico, and Washington.
“For more than 40 years, Costco has consistently listened to our members and earned their trust delivering consistent value on essential goods and expanding our health service offerings,” Ron Vachris, the CEO of Costco, stated. “Selecting SCAN as our partner to deliver a better healthcare experience for seniors, is an extension of that commitment. We have developed a shared understanding of what matters most to the seniors we serve. Deepening our partnership allows us to build on that foundation and create value for our members.”
This partnership is the first time Costco has collaborated with a Medicare plan.
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